This matrix simply derive from Inter-sector transactions table. It's generated by dividing intermediate consumption components by its corresponding production value. It express direct requirements of insumos or added value of the sector that appears at the top of the column. This matrix itself gives an important vision of economy structure and sector costs structures. However, it isn't useful to determine total repercussions on production levels if changes in final demand appeared.
First impact is obviously an equal increment on bakery production.
Increments on Production value as per stages 3. The last chart showed increment on production value caused by final demand increase on just a sector. Global resolution to determine total requirements causing increases on final demand can be obtained through a mathematics procedure which transform technical coefficient matrix onto a direct and indirect requirements one. Finally, determining new values production and using direct requirements matrix, a new increment on inter-sector transactions matrix is obtained by multiplying technical coefficients. So far, we have submitted a complete view of basic concepts of insumo-producto model.