Korea-Japan Workshop on the Industrial Productivity Database

Annual Input-Output Tables andthe Supplementary Tables of theJIP Database
February 28, 2004

Kyoji FUKAO
Hyeog Ug KWON1

1. Data Sources• Every five years, the relatively reliable linked IO table isavailable. Therefore we chose the years 1970, 75, 80, 85,90, 95 and the final year 98 as our benchmark years.
Major data sources for our annual IO tables for thebenchmark years are••••1970-1975-1980 Linked Input-Output Tables, Management andCoordination Agency;
1980-1985-1990 Linked Input-Output Tables, Management andCoordination Agency;
1985-1990-1995 Linked Input-Output Tables, Management andCoordination Agency;
1998 Extended Input-Output Tables, Research and Statistics
Department, Economic and Industry Policy Bureau, Ministry ofEconomy, Trade and Industry.

• For other years we used METI’s extended IO tables forevery year.
22. Compilation Process 1• Among the above IO tables, there are some differencesin the rule of compilation and concepts. We adjusted
these differences. The lease industry’s physical capital,
which is rented to other industries, is treated as capital
input in the lease industry. The cost of R&D in eachsector is included in the production cost of thatindustry. The JIP Database is based on the 1968 SNA.
Therefore, software investment is not included ininvestment. And depreciation of government capital is
not included in the consumption expenditure of thegovernment.
• Next, we constructed converters to make adjustments
for changes in industry classifications over time andaggregated the IO data into our 84 sectors.
• The number of industries is limited by the fact that thedata of fixed capital investment (Fixed Capital(investment) Matrices) is available only at thisdisaggregated level.
32. Compilation Process 2•

We compiled IO tables in real terms (1990 prices) inthe following way. 1970-1975-1980 IO tables containreal IO tables at 1980 prices. Similarly, 1980-19851990 IO tables contain real IO tables at 1980 prices.
We linked these two real IO tables at year 1980. The
second and the third IO statistics are linked at year
1990. The third and the forth IO statistics are linked atyear 1995.

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3. Real Output and Implicit Prices of the SNA
Statistics and the JIP database 1•••

The real values in linked IO tables are created byusing price statistics such as the wholesale priceindex and the business service price index of theBank of Japan in a way similar to the real values in
the SNA statistics.
Therefore, real values of output and intermediate
input and implicit deflators in the JIP Database havebasically similar characteristics as the corresponding
SNA statistics of except for the treatment of the baseyear.
Japan’s long-term SNA statistics are based on a pricevector of a single year. In the case of the JIP
Database, real values and implicit deflators arecreated by linking real values of different base years.
53. Real Output and Implicit Prices of theSNA Statistics and the JIP database 2•

In the case of public medical services, publiceducation, and some other services, input cost is
used as an output deflator.

•In the case of Japan’s SNA statistics it is rare to use
production index for estimation of real output.
In the case of commerce, WPI and CPI ofcommodities traded are used as an output deflator.
In the case of some financial services for business,
WPI of capital goods is used as an output deflator.

•••

In the case of whole sale price index (corporategoods price index) of some IT products, hedonic
pricing method is recently introduced. But thecoverage of such treatment is still narrow.

64. On Future Revision of the JIP I-OTables
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2000 Input-Output Tables, Management andCoordination Agency is scheduled to be publishedon March 1, 2004.
1990-95-2000 Linked Input-Output Tables,
Management and Coordination Agency is scheduled
to be published in May of 2005.
Japanese government stopped to publish Extended
Input-Output Tables, Research and Statistics
Department, Economic and Industry Policy Bureau,
Ministry of Economy, Trade and Industry on “basic”
industry classification (3digit level) base from 2000.
From 2000 tables of 71 industries became to be themost disaggregated extended I-O tables. Within METI
there exists nominal output data at 3 digit level.
2003 extended I-O table will be available by Octoberof 2004.
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