Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

The 1985 Japan-US-EC-Asia Input-Output Table:
Its Compilation and Some Results of Analysis
By

Hirochika Ota*

Abstract
In this paper we introduce the compilation methods of "the 1985 Japan-US-EC-Asia

Input-Output Table", compiled by the Ministry of International Trade and Industry, andsome analyses on international economic dependency based on the table. In the compilation,

the following main items are introduced, (1) common sector classification, (2) adjustment ofeach country's input-output table, (3) estimation of the trade matrices, and (4) integrationof each table into an international table and balancing adjustment.

In the analysis, we

examine the followings, (1) the dependency of a country on other country's domestic final
demand, and (2) the effect of a $10 billion increase in the domestic final demand of eachcountry.

1.

Introduction

The 1985 Japan-US-EC-Asia international input-output table compiled by MITI (Ministry ofInternational Trade and Industry), Japan, was published in May 1993, and we have also pub

lished the 1-0 account data in August 1993. This paper1 presents the compilation method of"the 1985 Japan-US-EC-Asia Input-Output Table," compiled by MITI. The major compilation
procedures for this table are as follows:
1. construction of the common sector classification,
2. adjustment of each country's input-output table,

3. estimation of the trade sectors, and

4. integration of each table into an international table and balancing adjustment.

In addition, this paper also presents some results of the analysis on international economic
dependency based on the table.

2.

The Compilation of the 1985 International I-O Table

2.1.

Some features of the 1985 Japan-US-EC-Asia Input-Output Table

Figure 1 shows the format of the 1985 Jap an-US-EC-Asia table. We can obtain much informationfrom the table. In this section, firstly, the major features of the table are introduced as follows:
1. time of measurement: 1985,
Manuscript received July 14, 1994.

* Ministry of International Trade and Industry, Japan

1 Views expressed in this paper are those of the author and not those of MITI (Ministry of International Tradeand Industry).

The 1985 Japan-US-EC-Asia Input-Output Table(J1
P N 24(Unit: $10 billion)
Intermediate
Demand)(domestic Final Demand) (Export)
JPN
U.S.
EC
ASIA
JPN
U.S.
EC
ASIA
EXR0W OUTPUT
1~24
1~ 24
1~ 24
1-24 CPJ 0 CPJ 0 CPJ 0 CPJ 0 Ex+Adj
CT

<

H

Japanese producer
>EC
21
6

I —J ! J-US
27
192 \

1
S. ~~
24

US->J
18

E
1
C —

EC

U.S.* s

U.

24

A
1
S ~~
A 24

UA

price
:c-»j
2

s

EC—EC tec—a

Asia* sproducer* s

A-»US
20

A—EC
4

and

4

i nsuranc e on
1

USclf

ECclf

123

181

import

tax

4

of

48

USlp||ECliiii

22

A->J

A—US

A-EC|

24

5

4

at CI v

pnc

10

116

USCIf

190

6.354

297

2. 548

)
596

71

1255

:ountries concerned

2 I

s & imlported non-goods)
;cCIf
ACIf
92

16

1.467

651

on impojrted g|oods
1

5

2.405

1.056

612

Compensation of Employees
875
1 I
719 2,370

326

Other value added(Operating Surplus,

Total

13

imported goods from
1
5
1

Aclf

)

inputs

1 I 1.125

etc.

)

617

317

of Val ue Adde|d
1.492
3.949

643

607

2

3,883

6

price

A— A
5D7

2.451

price

Producejr

Customs duty &

Total

15

EC* s

77

1 I

41

!C—US
20

(imported goods from R. O.W.

W 24

1,260

)

EC

US-J U5~*USjUS->EC|US— A

24

c I f

►US

US->EC |US-A
15
15

Ocean freight
6
1

R
1
0 -

producer'ss prlc|e1,579

1 I 1.326

Total Commodity Outbut

1 | 2. 451

6.354 | 2.548

1. 255< Note >1.284

4. 100<Abbreviation>

Cp: Private Consumption Expenditure
J : Net Increase in Inventory
0 : Other Domestic Final Demand
Ex:Export to the Rest of the World(ROW)
Adj:Adjustment Item between exportof exporting country and importof importing country in the table
ROW: The Rest of the World

CT:

Control Totals

1:

EC denotes the United Kingdom,
East Germany).

2:

Asia denotes Indonesia, Malaysia, Singapore, the Philippines, Thailand,
China, Taiwan, and Korea.
Ill Shadow parts show domestic transaction matrix of domestically

3

produced goods andFrance,Germany(output)(excluding the former

services.

4: As to "Value added" and "Final demand" , if an original 1-0 table showed
the detailed items of them, they are shown as "Reference items" in thetable. EC has non-deductible VAT in intersection between "Other value
added" (Value added) and "Other domestic final demand" (Final demand).

Figure 1: The Format of the 1985 Japan-US-EC-Asia Input-Output Tables (24-sector)

55

56

Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

2. area coverage: four countries/regions,(a) Japan,(b) the United States,(c) EC (integrating three EC countries:

the United Kingdom, France, and Germany

while excluding the former East Germany), and(d) Asia (integrating eight countries/regions: Indonesia, Malaysia, Singapore, the Philippines, Thailand, China, Taiwan, and Korea).

3. commodity (row)-by-commodity (column) table,
4. non-competitive import type,
5. evaluation at producer's price(excluding import matrix from the rest of the world: c.i.f. basis),

6. sector size: 38 x 38-sector per country/region,

24 x 24-sector per country/region (aggregated sector classification),(i.e. the table is a square matrix with the size of"38 x 4" x "38 x 4" (=152 x 152) and "24 x 4" x "24 x 4" (=96 x 96)),
7. showing "imported services transaction" in "import matrix from the rest of the world(ROW)" with no country breakdown due to limitation of data,
8. showing "international freight charge and insurance cost" and "customs and import tax
on imported goods" as row vectors, respectively, due to limitation of data,
9. adjusting diagonal cell putting into zero at the level of 38-sector(Control Totals (the output of commodity) are less than CT of the original 1-0 table.),10. expressing in dollars by using the annual average exchange rate for 1985.

2.2.

Major compilation procedures of the table

Major compilation procedures of the table are as follows:
1. construction of the common sector classification,

2. adjustment of each original country's input-output table,
3. estimation of the trade sectors and breaking down into destination country/region,

4. balancing adjustment of each modified country 1-0 table and integration of country tables
into an international 1-0 table

The following sections provide more detailed explanation of the compilation procedures.

The 1985 Japan-US-EC-Asia Input-Output Table

2.2.1.

57

Construction of a common sector classification

Nowadays, many countries have their own input-output (I-O) tables. However, there are large

differences among these I-O tables with regard to I-O sector classification and sector size, as I-O
tables are usually compiled reflecting the industrial structure and viewpoints of the respective
countries. In order to facilitate international comparison, it is necessary to have common I-O
sector classification for an international input-output table.
Ultimately, the common I-O sector classification we prepare for the 1985 Japan-US-EC-Asia
I-O table consists of 38-sector tables and 24-sector tables.

As for the bilateral input-output

tables, they are 165-sector, 47-sector, and 26-sector, respectively, for Japan-US, 93-sector, 43sector, and 24-sector, respectively, for Japan-U.K., 86-sector, 43-sector, and 24-sector, respec

tively, for Japan-France, 55-sector, 43-sector, and 24-sector, respectively, for Japan-Germany(excluding the former East Germany). The followings are the compilation procedures.
The compilation of the common I-O sector classification begins by comparing and examining

the most detailed I-O table of each country. The 1985 I-O tables of each country we used are
408 sectors for Japan, 544 sectors for the United States, 102 sectors for the United Kingdom,

98 sectors for France, and 58 sectors for Germany (excluding the former East Germany). The
concepts and definitions of each sector, and the range of commodities included in each sector arechecked. Basically, each common I-O sector is established by aggregating similar original I-O

sectors of the countries concerned into a common I-O sector. As to unmatch original I-O sectors,
they are put into a common I-O sector by the name of "Other X" sector at approximate level ofeach similar category such as "Other transportation equipment" sector, or "Other manufactured
goods" sector.

As for the bilateral international I-O tables, it is possible to obtain common I-O sectors
by recombining and adjusting the Japan's I-O table to adapt the I-O sector classification of

its trading partners. Moreover, we checked the trade data between export data (f.o.b.) of theexporting country and import data (c.i.f.) of the importing country on the basis of each tentative
common I-O sector.

If there is a common I-O sector which has a large discrepancy on trade

data due to the mismatch of the trade code versus the I-O code between Japan's I-O table andthe partner's I-O table, we adjust this by referring to Japan's I-O data which are available atmore disaggregated levels, thus enabling us to reclassify the I-O classification with unmatchedtrade code with other I-O classification in which matching trade code is available. For instance,"Copy machines" is included in the broader classification "Office machines" in Japan's I-O codeclassification, whereas "Copy machines" is aggregated under "Optical instruments" in the US
I-O code classification. As Japan's I-O code classification consists of more detailed breakdown
as compared to the US I-O code classification, we reclassify the output of "Copy machines"
under another Japan's I-O code classification, namely "Other photographic instruments", sothat we can match this category with "Optical instruments" in the US I-O code classification.
As it is extremely difficult to create a completely coordinated international common I-O sector

classification, we have to set the common I-O sectors by mainly aggregating sectors concerned
as detailed as possible only for those sectors that are "nearly coordinated".
In the case of multilateral international I-O table, it is difficult to adjust the Japan's I-O table

to adapt simultaneously against the I-O sector classification of plural countries. Therefore, we
set up the common I-O classification for the 1985 Japan-US-EC-Asia I-O table by aggregating
widely original I-O sectors, and a result, we obtain the 38-sector and 24-sector (aggregatedsector) classifications.

2.2.2.

Adjustment of each country's input-output table

In order to facilitate international comparison, it is necessary to standardize the table format ofan international I-O table in addition to common I-O sector classification. Original I-O tables

58

Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

of each country have their own peculiar sectors such as dummy sectors. We modified original
1-0 tables to standardize them within feasible limits. The followings are the major sectors that
we modified.

With regard to dummy sectors such as "Office supplies for business use" sector and selfactivity sectors such as "self-transport" (in-house transport activity for passenger/freight), theirrow/column vectors are removed from the 1-0 table by redistributing their values to the respec

tive sectors in the endogenous part of the original 1-0 table.

After this adjustment, the 1-0

table shows the input of each column sector including a column vector of goods and services forthe activities of dummy/self-activity sectors.

With regard to "General government" sectors (central and local), their input vectors in theendogenous sector are transferred into "Government purchase" sector in final demand sector

in order to conform to the 1-0 table format of the United States and the United Kingdom.

However, as to the value added vectors (column), they remained the same as in each original
1-0 table.

2.2=3,

Estimation of the trade matrices

After standardizing table format with common 1-0 sector, it is necessary to estimate the trade
matrices of goods and services in each country's 1-0 table in order to compile an international

1-0 table. The modified individual country's 1-0 table (competitive import type) is divided intoa transaction matrix for domestically produced goods and services and a import matrix by using
trade coefficients.

The calculation formula and denotations are as follows:

Trade coefficients : m,- = Mi/^AX + Fd)i
M{ :](iX)i :Ff :imports of the z-th goods/services

intermediate demand of the z-th goods/services

domestic final demand of the z-th goods/services(= excluding export from final demand)

Domestic self-sufficiency coefficients : d,- = 1 — mt-

Then, the import matrix of a country's 1-0 table is further divided into 13 countries/regions

matrices, that is, imports from Japan, US, U.K., France, Germany (excluding the former East

Germany), Indonesia, Malaysia, Singapore, the Philippines, Thailand, China, Taiwan, Korea,
and the Rest of the world (ROW), by using trade coefficients by country. They are calculated
for each 1-0 row sector by using import trade statistics of the importing country.
The calculation formula and denotations are as follows:

Trade coefficients by country :m?5 = M[5/(^ AX + Fd){

Trade coefficients by country :mf* = MT8/(£AmX + Fm)i

(apply to a country having no import matrix)(apply to a country having an import matrix)
r :

s :

a supplying country (exporting country)

a demanding country (importing country)X)i :intermediate demand of the z-th imported goods/services

Fj71 :

domestic final demand of the z-th imported goods/services

The 1985 Japan-US-EC-Asia Input-Output Table 59

However, as to services transaction, they could not be showed by country matrices due tothe limitation on services transaction data. The inputs of domestically produced services arelisted in a section corresponding to the matrix on the domestically produced goods and services.
With regard to the inputs of imported services, they are included in a section corresponding to
the import matrix from the rest of the world (ROW).
As for the Japanese imports, we adjusted the Japanese import matrices (by country) by using
the results of a special survey on the demand structure of imported goods (CCCN 7-digit code

basis; answered about 1700 out of 5200 CCCN code commodities). Japanese exports are adjusted
in import matrix of Japan's trading partner country by using the name of demand sector whichobtained from a special survey on the demand structure of exports of Japan (CCCN 7-digit code

basis; answered about 1300 out of 3900 CCCN code commodities), and the distribution ratio of
each row 1-0 vector of the partner country's import matrix from Japan which is estimated byusing trade coefficients of imported goods from Japan.
With regard to international freight and insurance cost, they are estimated in matrix form

by using information from the US trade statistics and the Japan Maritime Research Institute.
Then the matrix of international freight and insurance cost is deducted from the import matrices(c.i.f. basis). Basically, the ratio of the international freight and insurance cost to the c.i.f. basis
import value is calculated at the level of 38-common sector by using the above-mentioned data

source. As to the ratio among U.K., France and Germany, they are treated zero due to limitationof data. Then they are multiplied by import matrices (by country with c.i.f. basis) in orderto get matrices (by country) of the international freight and insurance cost on imported goods.
Although the data are estimated in matrix form, they are shown only as a row vector in theinternational 1-0 table because of limitation in the data source.
Customs duties and import tax on imported goods are also shown as a row vector under

the import matrix from the Rest of the World in the table. The reason is that we could not

estimate the data in a matrix form for some countries' 1-0 tables. This is because some 1-0
tables show only a row vector of "customs duties", and some 1-0 tables have no data about it.
If we could get the data by a column vector, it is possible to estimate the data in a matrix form
using procedure similar to the trade coefficient method.

2.2.4.

Balancing each modified country's I-O table and integration of each table
into an international I-O table

After estimating 13 import matrices per each country/region, there will be discrepancies in eachcell between the summary table of 13 import matrices (including a import matrix from ROW)
and the original import matrix of that country. They should be balanced to be coincident withthe original import matrix. The cumulative errors of cells are balanced by using a kind of
Lagrange method (by computer processing).
As a result of the above process, each country's I-O table has a transaction matrix of domes
tically produced goods and services and 13 countries/regions import matrices. These matrices ina counry's I-O table are integrated into four countries/regions matrices, namely Japan, US, EC(U.K., France, and Germany excluding the former East Germany) and Asia. Then, each coun
try/region I-O table (Japan, US, EC, and Asia) was integrated into an international I-O table,that is, the 1985 Japan-US-EC-Asia I-O table (we call it the World I-O table for convenience).
Finally, we create a new sector by the name of "Adjustment item" in the final demand sectorof the World I-O table in order to balance the table. It is treated as if it is a kind of "export"
column vector in a broad concept by regarding it as transporting goods from exporting country

to importing country for the goods in that column.

Since we use the data of trade matrix

based on the import matrix of importing country side for estimation, it is necessary tojbalancehorizontally in the World table in order to adjust the discrepancy between exporting country's
I-O data and importing country's I-O data.

60 Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

After completing the table, the figures in the diagonal cells are deducted from the cell andthe CT (Control Totals = production output values) at the level of the most detailed common
sector classification, that is 38-sector. The reason is as follows. In order to facilitate international
comparison, we thought that it is necessary to remove the difference due to different data sources.
Usually, manufacturing census data shows shipment of the commodity excluding consumption
for own use in the establishment. On the other hand, statistics on commodity output include
it. For example, if the output of "iron and steel" is estimated by using manufacturing census
data, it does not include the output of "pig iron" which are consumed in production of "crude
steel" in the same establishment, but only the output for shipment to outside. The production
value of the census data is estimated by the formula "Production value = Shipment value +Net increase in inventory". However, if it is estimated by using statistics on commodity output,
the output value is greater than the one by census data because of the inclusion of the output
for own consumption in the same establishment. For this reason, it is necessary to remove thedifference due to data source for estimation of output in 1-0 account in order to be able tocompare internationally.

3.

Analysis of International Economic Dependency Based on the Table

By utilizing the 1985 Japan-US-EC-Asia 1-0 table, it is possible to analyze quantitatively the
relations of interdependence among the countries/regions concerned, in a way similar to theordinary input-output analysis method. For example, by linking "Leontief inverse matrix coef

ficients" to "domestic final demand" of a country/region concerned, we can estimate the output
increase in each sector/country induced by one unit of final domestic demand in each sec
tor/country.

This section introduces some results of analysis on relations of interdependence

among countries/regions concerned based on the table.
3.1.

Relations of interdependence among Japan, the United States, EC (U.K.,
France, and Germany) and Asia

3.1.1.

Dependence of a country/region to domestic final demand of other countries/regions concerned

Figure 2 shows output inducement distribution ratio of a country/region by domestic final
demand of other countries/regions concerned.

EC (integrating the United Kingdom, Franceand Germany excluding the former East Germany) and Asia have a high degree of dependence
in production owing to domestic final demand of other countries/regions concerned. As for EC,
it should be noted that the imports of EC from ROW (the rest of the world) are relatively large,
due to the fact that the other nine EC countries are classified in ROW.
As for Asia, it is highly dependent on the United States in particular, and Japan is also
highly dependent on the United States.
On the other hand, production in the United States has particularly low dependence on

domestic final demand of Japan, EC and Asia. Even when induced output by export to ROW

is included, US's dependence of production to demand of foreign countries/regions is the lowest

among the four countries/regions. In other words, US's production is highly dependent on its
own domestic final demand.

The major sectors of each country/region concerned which has large output inducement ratioby the domestic final demand of other countries/regions concerned are shown in Table 1. EC has
6 sectors out of 24 sectors in which inducement output is more than 10% by the demand of othercountries/regions concerned, Asia has 12 sectors, and Japan has 11 sectors. On the other hand,
the US has only one sector which the output inducement effect from other countries/regions isabove 10%, or 5 sectors which similar ratio is above 5%.

(unit:25.0
20.0□ US demand

H Japan' s demand

The 1985 Japan-US-EC-Asia Input-Output Table

Asia8□ Total□ Export to ROWI EC3's demand

EC3

15.0

US

I Asia8' s demand

Japan

10.0
5.0

0.0

Figure 2: Production Inducement Dependence of the Countries/Regions Concerned

Table 1: Output Inducement Distribution Ratio by Domestic Final Demandof Other Countries/Regions Concerned (24-sector of the 1985 Japan-US-EC-Asia 1-0 Table)
EC's Output Inducement Distribution Ratio by the Other Three Countries'/Regions' Do

mestic Final Demand (more than 10% Inducement Output Distribution Ratio)

3rd

2nd

1st

Ranking

Iron &: steel, and products

Ordinary machinery

Other transport machinery

Nonferrous metals

Precision machinery

Sector Name of EC

0.6%

0.4%

0.8%

0.3%

3.4%

1.4%

Japan

9.4%

7.9%

8.5%

8.9%

7.7%

14.9%

US

0.4%

2.7%

3.2%

3.8%

2.8%

2.3%

Asia

10.4%

11.0%

12.5%

13.0%

13.9%

18.7%

Total

(32.8%)(48.7%)(36.3%)(39.0%)(49.8%)(24.7%)

R.O.W.

(56.8%)(40.3%)(51.1%)(48.0%)(36.4%)(56.7%)

EC

(1)

4th

Automobiles

Reference

5th

By Domestic Final Demand of

6th

61

62

Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

(2)

Asian Output Inducement Distribution Ratio by the Other Three Countries '/Regions'
Domestic Final Demand (more than 10% Inducement Output Distribution Ratio)

Ranking(3)

Sector Name of Asia

By Domestic Final Demand of

Reference

Japan

US

EC

Total

R.O.W.

Asia

2.0%

26.2%

4.5%

32.7%

(11.0%)(56.4%)

1st

Electric machinery

2nd

Mining

20.7%

10.8%

1.0%

32.5%

(18.6%)(48.9%)

15.7%

3.1%

22.7%

(17.7%)(59.6%)

3rd

Textiles

3.9%

4th

Nonferrous metals

6.0%

13.2%

3.2%

22.4%

(16.3%)(61.3%)

5th

Precision machinery

3.2%

15.3%

2.3%

20.8%

(15.2%)(64.0%)

6th

Other manufactured goods

2.3%

15.2%

2.5%

20.0%

(17.4%)(62.6%)

7th

Pulp, paper, wood products

3.3%

11.4%

2.6%

17.2%

(10.5%)(72.3%)

8th

Metal products

1.5%

10.7%

1.3%

13.6%

(15.2%)(71.2%)

9th

Oil products

6.2%

5.9%

0.9%

13.1%

(22.0%)(65.0%)

10th

Chemicals

7.3%

1.7%

(74.6%)

Iron &; steel,and products

7.9%

0.9%

12.1%
11.4%

(13.3%)

11th

3.2%
2.6%

(10.9%)(77.6%)

12th

Commerce

3.5%

6.4%

1.2%

11.2%

(11.7%)(77.1%)

Japanese Output Inducement Distribution Ratio by the Other Three Countries'/Regions'
Domestic Final Demand (more than 10% Inducement Output Distribution Ratio)

Ranking

Domestic Final Demand of

Reference

US

EC

Asia

Total

R.O.W.

Japan

Automobiles

30.1%

3.3%

4.6%

37.9%

(19.6%)(42.5%)

2nd

Precision machinery

21.5%

5.3%

(10.3%)(56.1%)

Nonferrous metals

16.2%

2.9%

6.8%
8.6%

33.6%

3rd

27.7%

(14.4%)(57.9%)

4th

Electric machinery

17.1%

4.2%

5.3%

26.5%

(13.6%)(59.9%)

5th

Iron Sz steel, and products

12.0%

1.3%

12.4%

25.7%

(17.2%)(57.1%)

6th

Ordinary machinery

8.8%

1.5%

8.2%

18.5%

(8.9%)(72.6%)

7th

Mining

7.6%

1.3%

7.2%

16.1%

(8.5%)(75.5%)

1st(4)

Sector Name of Japan

8th

Metal products

8.5%

1.3%

3.8%

13.6%

(6.9%)(79.5%)

9th

Chemicals

6.1%

1.9%

5.6%

13.6%

(11.0%)(75.4%)

10th

Other transport machinery

6.9%

0.7%

5.9%

13.5%

(37.0%)(49.5%)

11th

Other manufactured goods

7.5%

1.5%

2.7%

11.6%

(8.2%)(80.1%)

US's Output Inducement Distribution Ratio by the Other Three Countries'/Regions' Do
mestic Final Demand (more than 5% Inducement Output Distribution Ratio)

Ranking
1st

Sector Name of US
Nonferrous metals

Domestic Final Demand of

Reference

US

EC

Asia

Total

R.O.W.

Japan

5.1%

3.2%

2.5%

10.8%

(11.3%)(77.9%)

2nd

Electric machinery

1.3%

3.7%.

1.7%

6.6%

(11.5%)(81.9%)

3rd

Agriculture, forestry, fishery

3.3%

1.2%

1.8%

6.3%

(9.4%)(84.3%)

4th

Other transport machinery

2.3%

1.5%

5.6%

(18.2%)(76.2%)

5th

Chemicals

1.9%
1.7%

1.9%

1.8%

5.4%

(12.1%)(82.5%)

The 1985 Japan-US-EC-Asia Input-Output Table 63

Increase of $10>000

JP—ECF

JPN—US'

from EC(8. 575)
from U.S.
( 82) < se*'from Japan ( 50)from Asia( 30)<ECF
ROW.OtherU. 262)
OutputIncrease of $10-000

from U.S. (9,471)
Lfrom Japan( 100)from Asia( 57)■>from EC( 54)
ROW. Other(
318)

«-i&

OutputInducement

USP

-ASA

Inducement

to U.S.UFD(14,410):

to ECBFD(13.416)■
to U.S.BFD( 267);
to JPNBFD( 156);to AsiaBFD(
98);
3-region S. T. ( 521);

USP

to JPNUFD(
to AsiaUFD (to ECUFD(
3-region S.T.(
U.S.

306);
183);
168)I
657)J

Total output

14. 410«-ASA

JPN( 81)-»EC(AXASA( 53)-EC(AXitiijrease of $i0;000
in
Japan

: nil i it bo
E(

I

PN"

from JPN (9,811)
from U.S.
( 44) <
from Asia( 29)<
JP1-from EC
(17)
ROW,Other( 99)
OutputInducement

to JPNJFD (16.248)
to AsiaJFD( 286)
to U.S. JFD( 281)to ECJFD(
69)
3-region S.T.( 636)1

JI

Increase of $l:0r000

SA1
rn\

SA

mi i iion in : Asia: ::

■us

from
from
from
^from

Asia(9,149)
JPN( 234)
U.S.
(119)
EC
(91)

jOutput

Inducement/ROW.Other(407); to AsiaAFD(15,367)! to JPNAFD( 879)! to USAFD( 511)', to ECAFD( 309)
13-region S.T(1.699)
Asia Total output
15,357-US

ASA(187)-JPN(AXUS (165)-JPN(AXEC ( 40)->JPN(AXJPN(494)-ASA(AX + FD)
US (295)-ASA(AX + FD)
EC (194)-ASA(AX + FD)

Figure 3: Effect of a $10,000 Million Increase in the Domestic Final Demandof Each Country/Region Concerned (Unit: $ million)

64 Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

Table 2: Induced Output of Each Country/Region by a $10 billions Increasein the Domestic Final Demand of the Countries/Regions Concerned (Unit: $ million)
I nduced Output of Each Country/Region
Increase in
Domestic
by the Demand (}f Country/Region Concerned

Final

Domestic

Demand ofFinala Country

Demand/Region($ million)($ million)($ million)($ million)($ million)($ million)

Japan

10000

16248

281

69

286

16883

US

10000

306

14410

168

183

15066

EC

10000

156

267

13416

98

13936

Asia

10000

879

511

309

15367

17067

17589

15469

13961

15934

62952

Asia

EC

US

Japan

Total of4 Regions

Total Induced Outputof the Head Column

Country/Region

Table 3: Induced Import of Intermediated Inputs by the Outputof the Producing Country/Region (Unit: $ million)
Induced Import by the Output of

Individual Country/Region Concerned
Input from r-country

Japan's

US's

EC's

Asia's1

OutputOutputOutputOutput

16248

14410

13416

15367

60

30

260

77

176

from Japan

from US

122

from EC

24

46

from Asia

158

46

23

Subtotal

304

152

130

40

10

7

62

513

279

953

586
101

Insurance &; Freightfrom R.O.W.

103

539

Customs

28

11

27

(Insurance &; Freight + Customs)

68

20

34

162

884

451

1117

1288

Input Total

Table 4: Purchase of Goods from r-Country/Region by a $10 billions Increase
in Domestic Final Demand of Each Country/Region (Unit: $ million)
Composition of Domestic Final Demand

Composition of $10 Billion

of Individual Country/Region

Japan

US

EC

Asia

10000

10000

10000

10000

9811

100

50

234

from US

44

9471

82

119

from EC

17

54

8575

91

from Asia

29

57

30

9149

9900

9683

8738

9593

8

11

8

34

from R.O.W.

81

283

583

253

Customs

11

23

20

120

(Ins. & Fre. -f Cus.)

19

34

28

154

Domestic Final Demand ofCountry/Region Concerned
from Japan

Subtotal
Insurance & FreightNon-deductible VAT, etc.
Total

650

10000

10000

10000

10000

The 1985 Japan-US-EC-Asia Input-Output Table 65

Table 5: Total Imports of Intermediate Inputs Induced by a $10 Billions Increase
in Domestic Final Demand of Each Country/Region (Unit: $ million)
Induced Import by a $10 Billions
Increase in Domestic Final Demand of

Individual Country/Region Concerned
Input from r-country

Japan's

US's

EC's

Asia's$10 bil.

$10 bil.

$10 bil.

$10 bil.

16248

14410

13416

15367

-

160

81

494

from US

165

_

159

295

from EC

40

100

from Asia

187

103

53

Subtotal

393

363

293

(induced output)—►
from Japan

194
-

983

Table 6: Induced Import by the Output of the Producing Country/Region (Unit: $ million)
Induced Import by the Output of

Individual Country/Region Concerned
Input from r-country

Japan's

US's

EC's

Asia'si

OutputOutputOutputOutput

17589

15469

13961

15934

65

31

270

80

183

from Japan

from US

132

from EC

26

49

from Asia

172

49

24

Subtotal

329

163

136

43

10

8

64

555

299

992

608
104

Insurance & Freightfrom R.O.W.

106
559

Customs

30

12

28

(Insurance & Freight -f Customs)

73

22

36

168

957

484

1163

1335

Input Total

Table 7: Total Import Induced by a $10 Billions Domestic Final Demand of Each Country/Region(Unit: $ million)
Induced Import by the $10 Billions
Increase of Domestic Final Demand of
Individual Country/Region Concerned
Input from r-country(induced output)—*

Japan's

US's

EC's

Asia's$10 bil.

$10 bil.

$10 bil.

$10 bil.

17589

15469

13961

15934

164

82

504

162

302

from Japan
from US

175

from EC

42

103

from Asia

200

107

54

Subtotal

418

374

299

198

1003

66 Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

Table 8: The Top Three Sectors in a Country/Region Concerned which Production

would be Induced by a $10 billions Increase in Domestic Final Demandof the Other Three Countries/Regions Concerned([Unit:mil lion dollars)Country/region whose domestic final demand
would be increased I510,000 mi 1 lions
Top three sectors
whose output would
be induced bydomestic final

demand of Country/
region concerned

Increase of$10,000
mill ionss
in Japan' s
domestic
final demand

To Japanese sector: ; All:16, 248

Increase of$10,000
millions

Increase of$10,000
millions

Increase of$10,000
millionsin U. S. 's
in EC* sin Asia* s
domestic
domestic
domestic
final demand final demand final demand
All

:

306

All

:

156

All

:

879

482 Electricmachinery:

1st

sectorServices:

2nd

sectorConstruction:

Electric
Ordinary
53 machinery :36 machinery: 108
Automobi1e:51 Services: 16 Electric181
machinery

3rd

sectorCommerce:

174 Services

To U.S.' s sector
1stsector

All

:

281

Agriculture,

Aii

:

:

14,4lflServices;

forestry,
fishery36

2nd sector

Services

28 Commerce:

3rdCommerce:

28 Construc

sectorTo EC s sector

All

:

69

103

16

:
Iron andsteel :

267

All

511

31 AutomobileAll:

457 Electricmachinery::

Electric
machinery55: 54

169 Commerce:

28

Commerce:

54

Services:

27

Services:

51

tion

:

117

All

:

168

All:

13, 416

All

:

1st

sectorChemicals:

11 Automobile:20 Services: 382 Services:

2nd

sectorServices

7 Ordinary:

machinery:
3rd

sector

To Asian sector
1stsector

2nd

sector

3rd

sectorAll:

Mining

:

:::

286

All

:

73 Electricmachinery:

309

66

Commerce: 144 Ordinary

machinery:42

Government

17 activity: 132 Chemicals:28
183
28

All

:

Textiles:

98

All:

15,357

14 Agriculture,

Electric
26 machinery : 14

forestry,
fishery: 230

Agriculture,
Textiles :forestry,
Services:21B
fishery :40 Other manu
Agriculture,
factured
forestry,
Construc
Commerce:
25 goods: 22 fishery : 11 tion
:174

Total of 4 Countrie s/Rs.

Note 1:18

Ordinarymachinery': 5 Service :97

16. 883

15,066

13. 936

17,067

Shadow parts denote inducement of output to domestic sectors.

The 1985 Japan-US-EC-Asia Input-Output Table 67

3.1.2.

Effect of a $10 billion increase in the domestic final demand of each coun
try/region concerned

If we assumed that the component ratio of each country's domestic final demand is constant,
we can calculate the effect of a $10 billion increase in the domestic final demand of each coun
try/region concerned (see Figure 3, Table 2-7). In the case where domestic final demand isincreased by $10 billion in Japan, the United States, EC and Asia, respectively, Asia has thelargest impact on production and other country's export increase effect of the other three countries/regions concerned.
The details are as follows.

1. Effect of a $10 billions increase in Asian domestic final demand

A "$10 billions" increase in Asian domestic final demand is expended directly to buy$9,149 millions of Asian goods, $234 millions of imported goods from Japan, $119 millionsof imported goods from US, and $91 millions of imported goods from EC (see Table 4,
Figure 3).
Their total repercussion effects on production by Asian demand on goods of four countries/regions concerned are $15,367 millions for Asia, $879 millions for Japan, $511 millions
for US, and $309 millions for EC. The total effects on production on four countries/regions

concerned is $17,067 millions.

Asia exerts the largest production increase effect on theother three countries/regions concerned (see horizontally Table 2, Figure 3).

The topthree sectors with the largest induced output are shown in Table 8. "Agriculture, forestry,
fishery" sector is the sector most stimulated by demand increase in Asia.

Asia needs imports of intermediate inputs to produce the $15,367 millions of output
inducement.

The required imports is calculated to be $260 millions from Japan, $176

millions from US, and $103 millions from EC, respectively (see Table 3). In other words,
Asia has the largest impact on export increase effect of the other three countries/regions
concerned due to Asian intermediate demand. In addition, as a part of the "$10 billion"
increase in Asian domestic final demand is expended to buy imported goods, Asian required

imports is $494 millions from Japan, $295 millions from US, and $194 millions from EC,
respectively (see Table 5).
In the case of a $10 billions demand increasing simultaneously in four countries/regions
concerned, Asian induced output increase is $15,934 millions.

That is, in addition to$15,367 millions due to its own demand ($10 billions), there are $286 millions, $183 millions
and $98 millions of induced output in Japan, US and EC, respectively, by a $10 billions
increase in domestic final demand in Japan, US and EC respectively (see vertically Table2). The required import by country/region for the output of $15,934 millions is shown in

Table 6, and the total import (intermediate import + domestic final demand import) bycountry/region concerned is shown in Table 7.
2. Effect of a $10 billions increase in Japanese domestic final demand
A "$10 billions" increase in Japanese domestic final demand is expended to buy $9,811
millions of Japanese goods, $44 millions of US's goods, $29 millions of Asian goods, and$17 millions of EC goods (see Table 4, Figure 3).
Their total repercussion effects on production by the Japanese demand for the goodsof four countries/regions concerned are $16,248 millions for Japan, $286 millions idi Asia,$281 millions for the US, and $69 millions for EC. The total effects on production infour countries/regions concerned is $16,883 millions (see horizontally Table 2, Figure 3).
Although Japan exerts large increase effect on production, its total receive impact from theother 3 countries/regions' respective $10 billions demand increase is greater than its total

68

Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

impact on the other 3 countries/regions. The top three sectors with the largest induced
output are shown in Table 8. "Services" sector is the sector most stimulated by demand
increase in Japan. With regard to other country's/region's sectors, it stimulates the outputof raw materials producing sector such as "Mining" sector of Asia, "Agriculture, forestry,
fishery" sector of US, and "Chemicals" sector of EC.
Japan needs imports of intermediate input to produce the $16,248 millions of output
inducement. The required import is calculated to be $158 millions from Asia, $122 millions
from the US, and $24 millions from EC, respectively (see Table 3). Japan has large impact
on export increase effect of the other three countries/regions concerned due to Japaneseintermediate demand (Asia: $539mil., Japan: $304 mil., US: $152 mil., EC: $130 mil.). In
addition, part of the $10 billions increase in Japanese domestic final demand is expended
to buy imported goods mentioned-above. Consequently, Japanese required imports is $187
millions from Asia, $165 millions from the US, and $40 millions from EC, respectively (seeTable 5).

In the case of a $10 billions demand increasing simultaneously in four countries/regions
That is, in addition
to the $16,248 millions induced by its own demand ($10 billions), there are $879 millions
output induced by Asian $10 billions demand, $306 millions by US, and $156 million by EC
concerned, Japanese induced output increase is $17,589 millions.

(see vertically Table 2). The required import by country/region for the output of $17,589
millions is shown in Table 6, and the total import (intermediate import 4- domestic final
demand import) by country/region concerned is shown in Table 7.

3. Effect of a $10 billions increase in US's domestic final demand

A "$10 billions" increase in the US's domestic final demand is expended to buy $9,471
millions of US goods, $100 millions of Japanese goods, $57 millions of Asian goods, and$54 millions of EC's goods (see Table 4, Figure 3).
Their total repercussion effects on production by the US's demand on the goods offour countries/regions concerned are $14,410 millions for the US, $306 millions for Japan,$183 millions for Asia, and $168 millions for EC. The total effects on production in four

countries/regions concerned is $15,066 millions (see horizontally Table 2, Figure 3). In thecase of the United States, its total receive impact from the other three countries/regions'
respective $10 billions demand increase is also greater than the total impact on the other3 countries/regions.

in Table 8.

The top three sectors with the largest induced output are shown"Services" sector is the most stimulated sector in US. With regard to othercountry's/region's sectors, it stimulates the output of consumption goods producing sector
such as electric machinery sector of Japan and Asia, automobile sector of Japan and EC,
and textiles sector of Asia, etc.

The United States needs imports of intermediate input to produce the $14,410 millionsof output inducement. The required import is calculated to be $60 millions from Japan,

and $46 millions from Asia and EC, respectively (see Table 3). In addition, part of the$10 billions increase in US's domestic final demand is expended to buy imported goods
mentioned-above. Consequently, US's required imports is $160 millions from Japan, $103
millions from Asia, and $100 millions from EC, respectively (see Table 5).

In the case of a $10 billions demand increasing simultaneously in four countries/regions
concerned, US's induced output increase is $15,469 millions. That is, in addition to the$14,410 millions induced by its own demand ($10 billions), there are $511 millions output
induced by Asian $10 billions demand, $281 millions by Japan, and $267 million by EC(see vertically Table 2). The required imports by country/region for the output of $15,469
millions is shown in Table 6, and the total import (intermediate import + domestic final

demand import) by country/region concerned is shown in Table 7.

The 1985 Japan-US-EC-Asia Input-Output Table 69

4. Effect of a $10 billions increase in EC's domestic final demand

A "$10 billions" increase in EC's domestic final demand is expended to buy $8,575 millionsof EC's goods, $82 millions of US goods, $50 millions of Japanese goods, and $30 millionsof Asian goods (see Table 4, Figure 3).

Their total repercussion effects on production by the EC's demand on the goods offour countries/regions concerned are $13,416 millions for EC, $267 millions for US, $156
millions for Japan, and $98 millions for Asia. The total effects on production in thefour countries/regions concerned is $13,936 millions (see horizontally Table 2, Figure 3).
EC has almost the same impact between its total receive impact from the other three

countries/regions' respective $10 billions demand increase and the total impact on theother 3 countries/ regions. The top three sectors with the largest induced output are
shown in Table 8. "Services" sector is the most stimulated sector in EC. With regard toother country's/region's sectors, it stimulates the output of electric machinery sector ofthree countries/ regions, and the textiles sector of Asia.
EC needs imports of intermediate input to produce the $13,416 millions of output
inducement. The required import is calculated to be $77 millions from US, $33 millions

from Japan, and $23 millions from Asia, respectively (see Table 3).

In addition, partof the $10 billions increase in EC's domestic final demand is expended to buy imported

goods mentioned above. Consequently, EC's required imports is $159 millions from US,$81 millions from Japan, and $53 millions from Asia (see Table 5).

In the case of a $10 billions demand increasing simultaneously in four countries/regions
concerned, EC's induced output increase is $13,961 millions. That is, in addition to the$13,416 millions induced by its own demand ($10 billions), there are $309 millions of output
induced by Asian $10 billions demand, $168 millions by US, and $69 million by Japan (seevertically Table 2).

The required imports by country /region for the output of $13,961

millions is shown in Table 6, and the total import (intermediate import + domestic final
demand import) by country/region concerned is shown in Table 7.

4.

Future Prospects of the 1990 International I-O Table

MITI intends to compile the international input-output tables for 1990 using similar method.
That is, bilateral international I-O tables for Japan-US, Japan-U.K., Japan-France, Japan-

Germany, and a multilateral I-O table for Japan-US-EC-Asia. As for the 1990 Japan-US inputoutput table, the preliminary version is scheduled to complete in May 1995. We will use the 1990

US I-O table prepared by INFORUM (Interindustry Forcasting at the University of Maryland inUS) which is based on the 1982 US benchmark I-O table. Although we still have a lot of problems
to be solved for the 1990 international I-O table, we will try to compile the international I-O
tables for 1990, and to supply them as a kind of public goods.

1

24

]

I

Value added

>

<

F,"

X

E,rR

>

Asia [Final demand][ export ](0)' ■■

1(S x.,")

vector

_i...

X i j

i

vectorj(0)(2 F1,")(vector)F(vector)

4-14E

Non-deductible Value added tax vector

NDVAT

Output value (commodity) of «-sector in r-country/region
Domestic final demand in s-country/region (s moves over four countries/regions)
Export value from r-country/region to the Rest of the World (r moves over four

XI

Fs
ErR

R

The Rest of the World

Korea)EC (the United Kingdom, France, and Germany excluding East Germany)
Asia (Indonesia, Malaysia, Singapore, the Philippines, Thailand, China, Taiwan, and
E
A

Japan

The United states

The number of sectorsnU

The j»-th demanding sector (commodity) (l<j<n)jJ

A demanding country (s moves over four countries/regions)
The i-th supplying sector (commodity) (l<i<n)iA supplying country (r moves over four countries/regions)srcountries/regions)

i-sector export value from r-coun try/region to the Rest of the World

ElR»-sector input value from r-country/region in s-country/region

Output value (commodity) of ./-sector in s-country/region

Value added of j-sector in s-country/region

A vector denotes the cost of customs & tax on imported goods
It includes "c.i.f." cost and "customs duties" cost.

Total input

the Rest of the World

ROW
cus.

A vector denotes the cost of international freight &; insurance

c.i.f.

»-sector input value from r-country/region in j'-sector of s-country/region(commodity)"

Output

1

1

(0);

Input

1

(NDYAT) I

Total

cus.

ROW 2424
cif. 1
1

A

E

U

J

EC

x ufl

U.S.

Cj] 1—24 1-24 1-24 1-24 FJ Fu FE FA EJREUREBREAR Output
 Japan<

The Structure of the 1985 Japan-US-EC-Asia Input-Output Table[Denotation]

1.

Appendix

70 Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

The 1985 Japan-U.S.-EC-Asia Input-Output Table 71

2.

Input Coefficient Matrix

A=(a Mr°)(=x ./VXj1)

A'1

AJ0

A"

Auu

A'A

-

(endogenous

variables)

A K'

A B0

ABA

AA'

AA0

AAA J

A«,,IA,,,°A«,,1A«,,A- (exogenous
A"
A

AHU
JA

ARB
UA

ARA
BA

variables)

A -1(exogenous

V j J

V jU

V jB

V jA

variables)[Denotation]
Input coefficient matrix consisting of 4 countries/regions concerned
i-sector input coefficient from r-country/region in ji-sector of 5-country/regionii-sector input value from r-country/region in j-sector of 5-country/region
Output value of j-sector in 5-country/region
Value added coefficient of ji-sector in 5-country/region
A supplying country (r moves over four countries/regions)
A demanding country (5 moves over four countries/regions)
The i-th supplying sector (commodity) (l<i<n)i

The jf-th demanding sector (commodity) (l<j<n)s

The number of sectors

n

J

Japan

U

The United statesA

EC (the United Kingdom, France, and Germany excluding East Germany)
Asia (Indonesia, Malaysia, Singapore, the Philippines, Thailand, China, Taiwan, andR

The Rest of the World

3.

Inverse Coefficient Matrix

E

Korea)

B=(b ,jri)= ( I - Am'0)

- B

j J

B

I U

B

J E

B

J A

B

u J

B

u u

B

U E

B

U A

B

E J

B

BU

B

E E

B

E A

- B

A J

B

A U

B

AE

B

A A

72 Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

4.

Induced Output by Domestic Final Demand of Each Country/Region

X ,FrB

=

<

B ,

<

>

B

F,">

=

<

X,F" ><Induced Output)
 Japan

U.S.

EC

Asia

jl-24 1-24 1-24 1-24

F' Fu FE FA(E8OW)

XF'XFUXFEXFA(XER)
1

oooot
V

J

OOOO'

oooo<

>ooo<

OOOO'

J'

OOOO'

n,'

oooo<
)OOOl

24

24
I

)OOOI
>ooo<

U

3OOO'

— B ,

X

—-

F

...

OOOO'
OOOO'
5OOO

E

n,"

u

)OOO'

3OOO

X

F r i

E

-* -'

sx,

OOOO
OOOO

24

24

[Denotation]
Induced output value of i-sector in r-country/region by domestic final demand of
5-country/region to the goods from r-country/region to s-country/region

XF°
{XBR)

Induced output value by domestic final demand of s-country/region

rtrs

Inverse coefficient Matrix consisting of 4 countries/regions concerned

Ba
F"

Induced output value by export to the rest of the world

Domestic final demand of s-country /region
Domestic final demand of s-country/region to the i-sector from r-country/region tos-country/region

(E
r

ROW\

Export to the Rest of the World (ROW) from r-country/region
A supplying country/region (r moves over four countris/regions)s

A demanding country/region (s moves over four countris/regions)i

The z-th sector (commodity) in left hand column of the table (l<i<n)j

The j-th. sector (commodity) in head column of the table (l<j<n)74 Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

6.

Induced Output Coefficient (Total Requirements) by a Unit of Domestic Final

Demand of Each Country/Region Concerned

C,F1

=

( B urix F ,ri)<Induced output)x( i F !B) -1<Column totalofthe final

demandin s-country/region>

=

(X/")

(if;)

[Denotation]
iFa

Induced output coefficient (total requirements) to the t-th sector by a unit of domestic
final demand of s-country/region
Inverse coefficients matrix consisting of 4 countries/regions concerned

Domestic final demand of s-country/region to the z-th sector from r-country/region

to s-country/region
A unit row vector consisting of all 1

Diagonal matrix

Domestic final demand of s-country/region to the i-th sector
A supplying country (r moves four countris/regions)

A demanding country (s moves four countris/regions and ROW)

The z-th supplying sector (commodity) of country r (l<i<n)
The j-th. sector (commodity) in head column of the table (l<j<n)[Calculation step](1)

Structure of the domestic final demand of s-country/region are described inchart 1. EC's column total of domestic final demand includes non-deductible
VAT (value added tax).

(2)

The row vector consisting of column totals of these country's/ region's domestic
final demand are made diagonal matrix consisting of the inverse. (Chart 2.)(3)

Induced output coefficients (total requirements) to z-th sector by a unit ofdomestic final demand of each country/region concerned are calculated bymultiplying "induced output matrix by each country/region final demand"by "diagonal matrix of the inverse consisting of column totals of these countries'/regions' domestic final demand".

The 1985 Japan-U.S.-EC-Asia Input-Output Table 75

Chart 1.

Chart 2.

Structure of the domestic final

Diagonal matrix consisting of

demand of s-country/region

the inverse of column totalsof the 5-country/region's
domestical final demand

Total

input

Non-deductible VAT(value add tax)

( Chart 3.)

Chart 3.

Induced output coefficient (total requirements) to the i-th. sector by a unit of domestic final demand ofeach country/region concerned<

Inducedoutputby domestic

final

<

( i x F ,Tl<

Diagonal matrix

consisting of

<

>

C,"

>

<Induced output

the

to

the

coefficienti-th sector

demand of each

inverse of the coluan

by a unit of the domestic

country/region >totals of each

final demand ofcountry's/region" sdomestic finalxHA

X" XFU
1
J

—
24

U

E

•

•

{?!

pi

pO

cricfBcfBc'A

pA

1

in

0

0

(i

F

0

0

0

0

1

24

pB

s-country/region >denand>

0

0

J

~
t

24

o| o

U

•

■ °

E

•

A

—

C

'" "
*

1
24

C ,p

78

F' f° FB FA<$10 bil. increase case>

input

I FV

(VAT: value add tax)

U
E

A

<

M,ri

>

< = ABX + Fm >

0

...

0

M

..-

1

0

&

0

i:

I

1%%%'


Ju UM EM AM

•

24

•
1

24

'"**'

Output value of the j-th sector in s-country/region

country/region

Directly purchased import by a $10 billions increase in domestic final demand of thatcountry/region respectively

the j-th sector in s-country/region by a $10 billions increase in final demad in eachInduced imports of the t-th sector for intermediate input to the induced output of

respectively

Diagonal matrix consisting of the induced output value of the j-th sector in scountry/region by a $10 billions increase in final demand in each country/region

zero at the part of AJJ

mestic final demand of that country/region.
Import input coefficients matrix which is obtained from AJ"/ matrix by putting into

respectively and directly purchased import induced by a $10 billions increase in dowhich is induced by a $10 billions increase in final demand in each country/region

Total import value consisting of induced imports of intermediate inputs to the output

etc.

Non-deductible tax on VAT,

Total

(continued from previous page)

Journal of Applied Input-Output Analysis, Vol.2, No.l, 1994

[Denotation]

T" XI

References

Output Table", Japan, International Trade and Industry Statistics Association.

[1] Ministry of International Trade and Industry (1993 Aug.), "The 1985 Japan-U.S.-EC-Asia Input-[2] Hirochika OTA (1994), "Background and Compilation of 1985 Japan-U.S.-EC-Asia International
Association of Input-Output Studies.

Input-Output Table" (in Japanese), Innovation & I~0 technique, Vol.5, No.l, pp.12-18, Pan PacificJapan, Institute of Developing Economies.

[3] Institute of Developing Economies (1992 Sep.), "Asian International Input-Output Table 1985",

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