Sadao, Nishimura (2010): Towards Analysis of Vertical Structure of Industries: a method and its application to U.S. industries.
Download (3057Kb) | Preview
In this paper we present a method to analyse vertical structure of industries. A product of an industry has a hierarchical value structure with layers, each of which consists of value added injected by various production stages (current and previous) of various industries. This vertical structure makes it possible to measure value added (VA) levels (vertical positions) of VA receivers (stages of use industries), while products of supply industries and their value added flow into these stages of industries which have respective VA levels. These flows are value added contributions by supply industries. By calculating each industry's VA contributions and corresponding target VA levels, it is possible to evaluate vertical structure of industries in the whole economy. We applied this method to 1998--2008 U.S. Input-Output Tables. Resulting average VA contribution levels and graphs of VA contributions are displayed.
|Item Type:||MPRA Paper|
|Original Title:||Towards Analysis of Vertical Structure of Industries: a method and its application to U.S. industries|
|Keywords:||vertical structure; value added; supply; use|
|Subjects:||D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D57 - Input-Output Tables and Analysis
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C67 - Input-Output Models
|Depositing User:||Sadao Nishimura|
|Date Deposited:||16. Dec 2010 14:19|
|Last Modified:||12. Feb 2013 13:55|
 Bureau of Economic Analysis, U.S. Department of Commerce. 1998-2008 Annual I-O Tables. U.S. Bureau of Economic Analysis’s website: http://www.bea.gov/industry/io_annual.htm, 2010.
 Jiemin Guo, Ann M. Lawson, and Mark A. Planting. From Make-Use to Symmetric I-O Tables: An Assessment of Alternative Technology Assumptions. Paper presented at the 14th International Conference on Input-Output Techniques, October 10-15, 2002, Montreal, Canada, October 10-15 2002.
 Karen J. Horowitz and Mark A. Planting. Concepts and Methods of the Input-Output Accounts. website of U.S. Bureau of Economic Analysis of the U.S. Department of Commerce, September 2006.
 David Hummels, Jun Ishii, and Kei-Mu Yi. The Nature and Growth of Vertical Specialization in World Trade. Journal of International Economics, Vol. 54, pp. 75–96, 2001.
 Ronald E. Miller and Peter D. Blair. Input-Output Analysis: Foundations and Extentions. Cambridge Univ. Pr., Cambridge U.K., 2nd ed. edition, 2009.
 UNCTAD. The Offshoring of Corporate Service Functions: The Next Global Shift?, chapter 4, pp. 147–80, 2004.
 B. Wixted, N. Yamano, and C. Webb. Input-Output Analysis in an Increasingly Globalised World: Applications. OECD Science, Technology and Industry Working Papers, Vol. 2006/7.
 N. Yamano and N. Ahmad. The OECD Input-Output Database: 2006 Edition. OECD Science, Technology and Industry Working Papers, Vol. 2006/8, , 2006.