Table 4. An example of input-output tables for two industries, 2011 Machinery and equipment Computer, electronic and optical products Exports (Billion yen) Sales (Billion yen) Domestic Shipment activity activity Domestic Shipment activity Exporting activity Machinery and equipment Domestic Shipment activity 0 1586.49 activity 492.51 492.51 Computer, electronic and optical products Domestic Shipment activity 0 22667.63 activity 423.19 2812.32 Value added (Billion yen) 524.50 137.82 815.65 110.05 Total capital stock per worker (Mil. yen/worker) 5.38 8.10 3.82 6.59 Labor productivity (Mil. yen/worker) 635.22 893.59 777.48 1527.06 Number of workers 3,061 5,712 3,738 5,123 Share of university graduates 522,639 87,796 757,495 84,120 Share of workers 0.25 0.35 0.26 0.35 Sales (Billion yen) 0.151 0.159 0.18 0.13 Note only that share of non-regular workers is similar for exporting and domestic shipment activity in machinery and equipment industry while it is higher for domestic shipment activity in computer, electronic and optical products industry. In sum, all these observations imply a heterogeneity of factor inputs for exporting and domestic shipment activity which may vary considerably in between and within industries. Thus, our findings suggest that accounting for exporting activity's heterogeneity in the split input-output table may provide a better picture on the factor inputs and value added distribution within industries. Next, we discuss the differences between main indicators presented in section III.3 that arise when we split IO table into exporting and domestic shipment activity. First, we examine the domestic and foreign value added in Japanese’ industries exports. To present it in a
Piacentini, M., and F. Fortanier, (2015) “Firm Heterogeneity and Trade in Value Added,” OECD Working Paper. Timmer, M. P., Dietzenbacher, E., Los, B., Stehrer, R. and de Vries, G. J. (2015), "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production", Review of International Economics., 23: 575–605 Appendix 1. Framework of Estimation of Split IO table by quadratic programming methodology The framework to implement quadratic programming is described below. Set initial elements of the split IO table First, we must decide an initial value of each element of the split IO table. While some parts are transcribed from the original IO table, some are needed to be based on the information from micro data. Thus, we put the initial data in the following way (Appendix Figure 1); Japanese manufacturing sector’s output used by Japanese manufacturing sector’s input By definition, exporting activity’s output is zero. The original element is divided into domestic shipment activity’s output used by exporting and domestic shipment activity, proportional to the share of sales of exporting and domestic shipment activity in demand side, calculated in III. 2. (2) b). Japanese manufacturing sector’s output used by foreign sectors’ input The original element is transcribed in exporting activity and zero is recorded in domestic shipment activity. Japanese manufacturing sector’s output used by Japanese final demand The original element is transcribed in domestic shipment activity and zero is recorded in exporting activity. Japanese manufacturing sector’s output used by foreign countries’ final demand. The original element is transcribed in exporting activity and zero is recorded in domestic shipment. foreign sectors’ output used by Japanese manufacturing sector’s input The original element is split proportional to the share of input of exporting and domestic shipment activity in demand side, calculated in III. 2. (2) b). Output of exporting and non-exporting sector of Japanese manufacturing sector