## Abstract

15.1. The System includes an integrated set of supply and use tables, or matrices, as well as symmetric input-output tables, or matrices. They provide a detailed analysis of the process of production and the use of goods and services (products) and the income generated in that production. The concepts and definitions in the input-output tables of the SNA are the same as in the rest of the System.

## A. Input-output in the System

### 1. Introduction

• 15.1. The System includes an integrated set of supply and use tables, or matrices, as well as symmetric input-output tables, or matrices. They provide a detailed analysis of the process of production and the use of goods and services (products) and the income generated in that production. The concepts and definitions in the input-output tables of the SNA are the same as in the rest of the System.

• 15.2. The integration of “input-output” in the overall system of national accounts is an important feature of the SNA. Its role in the System is primarily related to the goods and services accounts and to the shortened sequence of accounts for industries. In complement to the full sequence of accounts for institutional sectors, which cover all kinds of accounts in the System, the supply and use tables, and subsequently the symmetric tables, serve to provide a more detailed basis for analysing industries and products in the System through a breakdown of the production account and the generation of income account in the System, and the goods and services account leading to the symmetric input-output table. “Symmetric” means there are the same classifications or units (i.e., same groups of products) which are used in both rows and columns. In the supply and use table, when the number of rows of products and columns of industries happens to be equal, we shall refer to a square (not symmetric) supply and use table. However, supply and use tables are most often rectangular (having more products than industries).

• 15.3. The input-output tables and in particular the supply and use tables serve two purposes: statistical and analytical. They provide a framework for checking the consistency of statistics on flows of goods and services obtained from quite different kinds of statistical sources—industrial surveys, household expenditure inquiries, investment surveys, foreign trade statistics etc. The System, and the input-output tables in particular, serves as a coordinating framework for economic statistics, both conceptually for ensuring the consistency of the definitions and classifications used and as an accounting framework for ensuring the numerical consistency of data drawn from different sources. The input-output framework is also appropriate for calculating much of the economic data contained in the national accounts and detecting weaknesses. This is particularly important for the decomposition of values of flows of goods and services into prices and volumes for the calculation of an integrated set of price and volume measures. As an analytical tool, input-output data are conveniently integrated into macroeconomic models in order to analyse the link between final demand and industrial output levels. Input-output analysis also serves a number of other analytical purposes or uses.

• 15.4. This chapter has three main parts or stages:

• (a) Goods and services accounts;

• (b) Supply and use tables;

• (c) Analytical input-output tables.

• 15.5. A fundamental and extremely important role is played in the System by the goods and services account. In fact, this is the basis from which the supply and use balances are derived. It shows for the economy as a whole and for groups of products the total resources in terms of output and imports, and the uses of goods and services in terms of intermediate consumption, final consumption, gross capital formation and exports. By then incorporating also the production and generation of income accounts of the System, an overall accounting framework is obtained for depicting the production sphere by the construction of integrated supply and use tables.

• 15.6. The symmetric input-output tables are also part of the System, serving as a well-established tool for various analytical purposes related to production. Many analyses require adjustments to the supply and use table, in particular with respect to valuation, treatment of imported products and common classification for rows and columns.

• 15.7. While supply and use tables are data-oriented in nature, the symmetric tables are always constructed from having made certain analytical assumptions, usually from existing supply and use tables. The System recommends that the statistical supply and use tables should serve as the foundation from which the analytical input-output tables are constructed. This explains the importance given to the description of supply and use tables in this chapter, while the more technical description of constructing symmetric input-output tables will mainly be shown in the planned Handbook on National Accounting: Input-Output Tables, which is being prepared by the Statistical Division of the United Nations Secretariat.

### 2. The input-output context

• 15.8. In national accounting and economic analysis two kinds of input-output tables (or matrices) are referred to:

• (a) Supply and use tables;

• (b) Symmetric input-output tables.

• 15.9. The supply and use tables are sometimes referred to as rectangular input-output tables, make and use tables, supply and disposition of commodities, etc. In the System, we shall use the term supply and use tables. The symmetric input-output tables are also often termed square (input-output) tables or matrices, Leontief-type input-output tables (matrices), etc. The square symmetrical tables are either product-product or industry-industry (producer-producer). In this chapter we shall be referring to tables rather than matrices, and to product-by-product tables and industry-by-industry tables.

• 15.10. The concepts and definitions in the supply and use tables are the same as elsewhere in the System. This applies in particular to transaction categories defined in a number of chapters. Most of the contents of chapter VI have direct relevance to this chapter. The same is true for the generation of income account with uses of value added (chapter VII), chapter IX describing final consumption expenditure and actual final consumption, chapter X on gross capital formation, and chapter XIV on exports and imports flows.

• 15.11. The supply and use and input-output tables also adopt the accounting rules of the System, i.e., the general rules of treatment for transactions and transactors apply to the input-output framework as part of the System. Chapter III contains a number of issues that become crucial in the input-output framework, in particular valuation, and which therefore need further elaboration.

• 15.12. Other issues of great importance to the input-output framework, dealt with in other chapters as well, include in particular:

• (a) Statistical units (chapter V), in particular establishments grouped in industries serve as a common basis for the production accounts and the supply and use tables, while using institutional units is not recommended for input-output compilation;

• (b) Principal, secondary and ancillary activities (chapter V), the distinction between which plays a key role in the compilation of the symmetric tables;

• (c) Constant-price estimation (chapter XVI), for which an entire set of price and volume measures, including for balancing items defined in the System (value added, gross domestic product (GDP), might be derived by using the supply and use tables as a framework;

• (d) chapter XX, in which the supply and use table is regarded as one social accounting matrix (SAM) building-block;

• (e) Employment measures (chapter XVII), the use of which is important to productivity studies.

### 3. Statistical units for input-output

• 15.13. Institutional units may engage in several different kinds of productive activities simultaneously. For the detailed analysis of production, the System, therefore, recommends that they should be partitioned into separate establishments each of which engages in only a single kind of productive activity at a single location. Industries are then defined as groups of establishments engaged in the same kind of productive activities. Ideally, the industries in the System would be composed of establishments that are homogeneous production units.

• 15.14. A unit of homogeneous production is defined as a producer unit in which only a single (non-ancillary) productive activity is carried out. However, the unit of hemogeneous production is not normally observable and is more an abstract or conceptual unit underlying the symmetric (product-by-product) input-output tables.

• 15.15. To be operational for statistics the establishment needs to be sufficiently distinct as a production unit to supply meaningful information. For the supply and use tables, the System needs a unit which can be observed and for which data can be collected. Furthermore, the choice of units is often dictated by the units being carried forward from the basic statistics.

• 15.16. When an establishment engages in more than one kind of activity, by reference to a given classification of activities, it is necessary to observe the fundamental distinction between principal and secondary activities on the one hand and ancillary activities on the other:

• (a) The principal activity of an establishment is the activity whose gross value added exceeds that of any other activity carried out within the same unit;

• (b) A secondary activity is an activity carried out within a single establishment in addition to the principal activity;

• (c) An ancillary activity is a supporting activity which is undertaken in order to create the conditions within which the activities of an enterprise can be carried out.

• 15.17. The establishment unit used for the sequence of accounts for industries may include principal as well as secondary productive activities within it, although secondary activities should be separated as far as practically possible. The further treatment of secondary production is one of the central issues met in the construction of symmetric input-output tables.

• 15.18. Ancillary activities typically produce outputs of services which are used as inputs into almost all kinds of productive activities, and their values are likely to be small compared with that of the principal and secondary activities of the enterprise. Consequently, they are treated as integral parts of the principal or secondary activities with which they are associated. In a production account and input-output context, ancillary activities are treated as follows:

• (a) Outputs of ancillary activities are not explicitly recognized and recorded in the System;

• (b) Inputs into ancillary activities are treated as inputs into the principal and secondary activities which they support;

• (c) Value added is not identified separately as it is combined with that of the principal and secondary activities. However, satellite analysis might try to identify inside the producing units some ancillary activities and their output.

• 15.19. In addition, output of an industry may include more than a single product when two or more products are produced simultaneously by a single productive activity as “joint products” (e.g., molasses linked to the production of sugar, natural gas linked to crude oil). Joint products may be distinguished as the principal product (by largest proportion) and the by-product (or by-products). In practice, by-products are often treated in the same way as secondary products in the input-output framework.

## B. Disaggregation of goods and services account

### 1. Goods and services account

• 15.20. The goods and services account shows, both for groups of products and for the total economy, how the total amount of a product available (supply) is equal to the total amount used. Before additional terms necessary for valuation are introduced, the main items of this basic equation (balance) are as follows:

• Output + imports (= total resources) = intermediate consumption + exports + final consumption + gross capital formation (= total uses).

• 15.21. Goods and services are traced through the economy from their original producers (either resident producers or producers abroad) to their users (either resident users or users abroad).

• 15.22. Compiling detailed flows is traditionally referred to as the commodity-flow method, utilizing basic statistics on goods and services (products) with the additional items required for the proper valuation. The full power of the commodity-flow method is reached when independent estimates could be made for each of the use items, i.e., when specific information establishes the basis of the distribution of the supply of products to the various kinds of uses. Reconciliation of the supply and use side of the equation is necessary. In some cases, the commodity-flow method is necessarily less sophisticated, when one of the uses (e.g., changes in inventories, gross fixed capital formation or even final consumption) has to be derived residually, or the distribution to users—fully or partly—has to be made in fixed proportions without enough direct information on or from users.

• 15.23. The product groups constitute the rows of the disaggregated supply and use table. The product classification scheme recommended for classifying data on goods and services is the Central Product Classification (CPC). It should be applied at a detailed level; the more detailed, the cleaner the view (and the less product mix). The CPC contains more than 1,800 products at its 5-digit level. For application in the national accounts countries lacking the full benefit from the commodityflow approach might use the intermediate 3-digit level of the CPC, counting some 300 products. Furthermore, in input-output work it may be necessary to group products according to the activity to which they relate.

• 15.24. In order to keep the tables presented in the SNA within a manageable format, the breakdown of product groups as they appear in the supply and use table mainly refers to the 1—digit CPC classification. Of course, these aggregated product groups are illustrative only.

### 2. Valuation and appropriate treatment of taxes and margins

#### Valuation concepts and their interrelationships

• 15.25. Before moving into the format of the supply and use table, the basic valuation concepts of the System and their interrelationships need to be spelt out.

• 15.26. The components of the price paid by the purchaser of a product that are recognized in the System are the following:

• Basic price of the product as output

• Taxes on the product

• Less subsidies on the product

• Trade and transport margins in delivering the product to the purchaser.

• 15.27. Some of these four components could be subdivided, for example to treat trade and transport margins in a more decomposed way, including to split the margins into separate wholesale and retail components, or to specify the value added tax (VAT) as a separate component. However, the input-output framework of the System needs as a minimum the specification of the four components. Two clarifications should be made:

• (a) Trade and transport margins also bear taxes less subsidies on the product linked to the trade and transport margins;

• (b) Trade and transport margins are also services which have a basic price.

• 15.28. The three central price concepts of the System—the purchaser’s price, the producer’s price and the basic price—have been defined in chapter VI, but are repeated here for the sake of convenience in the development of the chapter:

• (a) The purchaser’s price is the amount paid by the purchaser, excluding any deductible VAT or similar deductible tax, in order to take delivery of a unit of a good or service at the time and place required by the purchaser. The purchaser’s price of a good includes any transport charges paid separately by the purchaser to take delivery at the required time and place;

• (b) The producer’s price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any VAT, or similar deductible tax, invoiced to the purchaser. It excludes any transport charges invoiced separately by the producer;

• (c) The basic price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any tax payable, and plus any subsidy receivable, on that unit as a consequence of its production or sale. It excludes any transport charges invoiced separately by the producer.

• 15.29. There are definitional relationships between these three price concepts which have a central role in the input-output framework:

• (a) Purchaser’s price (which includes non-deductible VAT)—trade and transport margins (including taxes other than invoiced VAT less subsidies on product payable/receivable by wholesalers and retailers)—non-deductible VAT-type taxes = producer’s price (which excludes non-deductible VAT);

• (b) Producer’s price—taxes (other than VAT) less subsidies on products payable/receivable by their producers = basic price.

• 15.30. Higher price after storage might be due to additional output volume during storage (e.g., improvement in quality) or to holding gains (for further discussion, see chapter VI).

• 15.31. Producers’ and purchasers’ prices must in general—apart from any non-deductible VAT—coincide for services, as services are supplied directly from the producer to the user. If, in fact, retailers exist in the services’ area (like travel agencies in tourism), the price equality still holds, since the System by convention treats these retailers as producing services other than trade services. When goods are purchased directly from their original producers, the two prices will also tend to coincide in many cases, but there could be cases of transport margins as well. At any rate, the distinction between the purchaser’s price and the producer’s price is mainly relevant for goods which pass through the chains of wholesale and retail distribution.

#### Valuation of product flows

• 15.32. Chapter VI includes a comprehensive description of the valuation and the measurement of output, so it is sufficient here to refer to the main points that are very important in the input-output framework. The System recognizes two kinds of prices for output, both defined to exclude any VAT or similar deductible tax invoiced on the output sold:

• Basic prices

• Producers’ prices.

• 15.33. The preferred method of valuation is at basic prices. Producers’ prices may be used when valuation at basic prices is not feasible. The preference for basic prices over producers’ prices is based on several considerations, of which the following may be emphasized:

• (a) Basic prices provide the most homogeneous valuation along the rows;

• (b) Basic prices are found most useful when a system of VAT or similar deductible tax is in operation;

• (c) Basic prices record the amounts available to the producer.

• 15.34. Uses of goods and services—both intermediate consumption and final uses—are recorded at purchasers’ prices (i.e., including the margins and taxes less subsidies on products except deductible taxes).

• 15.35. For exports and imports, the System adopts analogous price concepts: the free on board (f.o.b.) price for exports and total imports and the cost, insurance and freight (c.i.f.) price for detailed imports. The difference between the f.o.b. price and the c.i.f. price represents the costs of transportation and insurance between the frontier of the exporting country and the frontier of the importing country. The definition of the c.i.f. price is as follows:

• The c.i.f. price is the price of a good delivered at the frontier of the importing country, or the price of a service delivered to a resident, before the payment of any import duties or other taxes on imports or trade and transport margins within the country.

• 15.36. The f.o.b. price is considered to be a special purchaser’s price applied to flows of exports. As explained in chapter XIV, the f.o.b. price can be regarded as the purchaser’s price that would be paid by an importer taking delivery of the goods at the exporter’s frontier after loading on to a carrier and after payment of any export taxes or the receipt of any tax rebates. The c.i.f. price is considered to be a basic price applied to flows of imports, equivalent to the basic price of a good or service produced by resident producers. The valuation of an imported good or service which is equivalent to the producer’s price of a good or service produced by resident producers is the total of the c.i.f. price and any import duty and excise duty or special tax payable on the import at the frontier (sometimes referred to as the ex-customs price). This equivalence holds as well between producer’s price excluding invoiced VAT and the c.i.f. price plus taxes and duties on imports, excluding VAT.

• 15.37. The implicit valuation of value added depends on the valuation of the two flows from which it is derived, output and intermediate consumption. While intermediate consumption is always valued at purchasers’ prices (in total, excluding deductible VAT), two alternative valuations are used for output leading to two alternative measures of gross value added:

• (a) Gross value added at basic prices defined as output valued at basic prices less intermediate consumption valued at purchasers’ prices;

• (b) Gross value added at producers’ prices defined as output valued at producers’ prices less intermediate consumption valued at purchasers’ prices.

• 15.38. The measure recommended throughout the System and reflected in the supply and use table, is gross value added at basic prices. In order to arrive at GDP at market prices, taxes less subsidies on products—not being allocated to industries—must be added to total gross value added at basic prices. If output and thus value added were at producers’ prices, non-allocated VAT and taxes less subsidies on imports must be added to arrive at GDP at market prices (see chapter VI, paragraph 6.235 and 6.236).

• 15.39. Gross value added at factor cost is not a concept used explicitly in the System. Nevertheless, it could be derived from gross value added at basic prices by subtracting other taxes less subsidies on production. However, this item is not recommended as a measure of value added in the System, since there are no observable prices such that output minus intermediate consumption equals gross value added directly in this case. Other taxes less subsidies on production, by definition, are in fact taxes or subsidies that cannot be eliminated from the prices of outputs and inputs. Therefore, gross value added at factor cost is essentially a measure of income and not output. In the input-output framework, it means that neither the output entries in the supply table nor the values added in the use table are given at factor cost.

• 15.40. As explained in chapter VI paragraph 6.110 and 6.111, the output of wholesale and retail trade is measured by the value of the trade and transport margins realized on the goods they sell. Goods resold are not included either in the output or the inputs of wholesale and retail trade. The trade and transport margins include trade margins plus any transport charges paid separately by the purchaser in taking delivery at the required time and place.

• 15.41. As indicated in chapter VI, input-output analysis—and the commodity flow method—may find it convenient to compare the price paid by the final purchaser of a good after it has passed through the wholesale and retail distribution chains with the price received by its original producer. Differences between price concepts were explained in paragraphs 15.25 to 15.31 above. The trade margins may be defined at basic as well as producers’ prices, as the first, or the first and second, of the following components:

• (a) The basic trade margins on the product; i.e., the cumulative wholesale and retail trade margins before taxes are added and subsidies subtracted;

• (b) Taxes (except invoiced VAT) less subsidies on the product payable by wholesale and retail traders.

• 15.42. The full cost of transporting a good from the place where it is manufactured to the place where the purchaser takes delivery of it may be included in a number of items. If the producer transports the good, or arranges for it to be transported without extra cost to the purchaser, these transportation costs will be included in the basic price. If the producer transports the goods himself this represents an ancillary activity and the individual costs will be included but not identifiable as transportation costs. If the producer pays a third party to transport the goods then transportation will appear as one of the intermediate costs to the producer. Similarly, wholesale and retail traders may arrange for goods to be moved from where they take delivery of them to where another purchaser takes delivery. As in the case of producers, these costs will be included in the trade margin if no separate charge is made for transportation to the purchaser. Again, as with producers, these costs may represent ancillary activity of wholesale and retail traders or the purchase of an intermediate service, thus entering trade margins. Finally, when transport is arranged in such a way that the purchaser has to pay for the transport costs even when done by the producer or the wholesale or retail trader, these are separately identified as transport margins. The full component of transport services in the trade and transport margins—composed of the transport margins themselves and the transport services included in the trade margins—may be analysed separately in a more analytical version of the supply and use table.

• 15.43. In order to fit in with the input-output framework, data on margins should have the format of products by uses as in table 15.2. These data might have been originally compiled at some industry level of wholesale and retail trade, from which the conversion to the appropriate format has to be made. Trade margins by products are obtained by adding across the various use categories of the product rows of the supporting table.

• 15.44. In the supply table, output of goods is at basic prices; output of the associated trade services and transport services are given at basic prices in their respective columns and rows. This means that taxes (except invoiced VAT) on the product payable by wholesalers and retailers are pooled with the other taxes (except invoiced VAT) on products and total non-deductible VAT to form the additional column of taxes on products in the supply table, and correspondingly the additional column of subsidies on products. Trade and transport margins are additionally distributed by products in the additional column of trade and transport margins of the supply table. In that column, negative entries appear on the rows for trade and transport services in order to have the total of that column equal to zero. In purchasers’ prices, total supply of trade services does not include trade margins, nor does total supply of transport services include transport margins; both of these having been allocated to the goods to which they relate.

#### Taxes and subsidies on products

• 15.45. Different valuation concepts in the input-output framework are to a large extent consequences of treatments of taxes and subsidies. As already seen above, taxes less subsidies on products make up part of the difference between the purchaser’s price and the basic price.

• 15.46. The taxes that appear in the input-output framework are all taxes on production and imports. These are taxes levied on goods and services at the time they are produced, sold or imported, or possibly on other occasions, together with taxes which become due as a consequence of engaging in production. Taxes on production and imports are subdivided into two min groups (see chapter VII, paragraph 7.49):

• (a) Taxes on products;

• (b) Other taxes on production.

• 15.47. The separation of taxes on products from other taxes on production is very important in varying valuations of product flows. Taxes on products are defined as follows (with the four constituent sub-categories):

• A tax on a product is a tax that is payable per unit of some good or service, either as a specified amount of money per unit of quantity or as a specified percentage of the price per unit or value of the good or service transacted.

• (a) A value added type tax is a tax on goods or services collected in stages by enterprises;

• (b) Taxes and duties on imports, excluding VAT, consist of taxes on goods and services that become payable at the moment when the goods cross the national or customs frontiers of the economic territory or when the services are delivered by non-resident producers to resident institutional units;

• (c) Export taxes consist of taxes on goods and services that become payable when the goods leave the economic territory or when the services are delivered to non-residents;

• (d) Taxes on products, excluding VAT, and import and export taxes consist of taxes on goods and services that become payable as a result of the production, sale, transfer, leasing or delivery of those goods and services, or as a result of their use for own consumption or own capital formation.

• 15.48. Value added type taxes in the System include VAT proper and taxes which are deductible in a way similar to VAT and are treated in the same way as VAT. They are defined and described as follows (see also chapter VI):

• VAT is a tax on products collected in stages by enterprises. There exist in some countries taxes that are narrower in scope than VAT but may also be deductible by producers. They are treated in the System in the same way as VAT. Producers are required to charge certain percentage rates of VAT on the goods or services they sell. The VAT is shown separately on the sellers’ invoices so that purchasers know the amounts they have paid. However, producers are not required to pay to the government the full amounts of the VAT invoiced to their customers because they are usually permitted to deduct the VAT that they themselves have paid on goods and services purchased for their own intermediate consumption or gross fixed capital formation. Producers are obliged to pay only the difference between the VAT on their sales and the VAT on their purchases for intermediate consumption or capital formation—hence the expression value added tax. VAT is not usually charged on sales to non-residents—i.e., exports. The percentage rate of VAT is also liable to vary between different categories of goods and services and also according to the type of purchaser.

• 15.49. The System recommends the use of the so-called net system of recording VAT. In this net treatment, output even at producers’ prices is valued excluding VAT invoiced by the producer; imports also are valued excluding invoiced VAT. For intermediate and final uses the purchases of goods and services are recorded including non-deductible VAT only.

• 15.50. VAT may be deductible, non-deductible or just not applicable as follows:

• Deductible VAT:

• Most of intermediate consumption

• Most of gross fixed capital formation

• Part of changes in inventories.

• Non-deductible VAT:

• Final consumption expenditure

• Part of gross fixed capital formation

• Part of changes in inventories

• Part of intermediate consumption.

• VAT not applicable:

• Exports

• Any goods or services subject to a zero rate of VAT regardless of their use

• Any producers exempted from VAT registration (small businesses or the like).

• 15.51. Depending on the tax regimes in countries, the contents of the tax column in the supply table would be as follows:

• Absence of VAT:

• When output is at basic prices, the taxes column will contain all taxes on products (i.e. taxes and duties on imports, export taxes, and taxes on products excluding import and export taxes).

• When output is at producers’ prices, it will include just taxes and duties on imports.

Presence of VAT (net treatment):

• When output is at basic prices, the taxes column will contain total non-deductible VAT on products, taxes and duties on imports excluding VAT, export taxes, and taxes on products excluding VAT and import and export taxes. When output is at producers’ prices, the taxes column will include taxes and duties on imports (excluding VAT), plus total non-deductible VAT on those products.

• 15.52. Subsidies are treated as if they were negative taxes on products or negative taxes on production. In the System, subsidies are current unrequited payments that government units make to enterprises on the basis of the levels of their production activities or the quantities or values of goods and services which they produce, sell or import. They are classified in the same way as taxes:

• (a) Subsidies on products;

• (b) Other subsidies on production.

• 15.53. The separation of subsidies on products from other subsidies on production, as in the case of taxes, is fundamental to the valuation of product flows. Subsidies on products are defined as follows:

• A subsidy on a product is a subsidy payable per unit of a good or service produced, either as a specific amount of money per unit of quantity of a good or service or as a specified percentage of the price per unit. It may also be calculated as the difference between a specified target price and the market price actually paid by a buyer.

## C. Supply and use table

### 1. Format of the supply and use tables

• 15.54. The recommended supply and use tables of the System are presented in table 15.1. An early reference is given to the supply and use tables in chapter II, using a reduced format in order to introduce the overall structure of the supply and use tables. It is not a simplified version of the latter.

Table 15.1.

Supply of products at basic prices and use of products at purchasers’ prices

Transport services on imports rendered by residents and non-residents.

Insurance services on imports rendered by residents and non-residents.

Transport and insurance services on imports rendered by residents and non-residents.

Including transport services on imports rendered by non-residents.

Including insurance services on imports rendered by non-residents.

Imports of individual goods are valued c.i.f. With global f.o.b/c.i.f adjustments, total value of imports of goods is valued f.o.b.

Total supply of trade services (136) does not include trade margins (68). Trade margins which are included in output of wholesale and retail trade in basic prices are allocated by products in column 2.

Total supply of transport services does not include transport margins (10). Transport margins which are included in output of transport in basic prices are allocated by products in column 2. Total supply of transport services also excludes transport services on imports (6) rendered by residents and non-residents which are included in imports by products values c.i.f.

Total supply of business services including insurance services does not cover insurance services on imports (4) rendered by residents and non-residents which are included in imports by products valued c.i.f.

This column may be broken down into gross fixed capital formation by institutional sectors or industries.

• 15.55. As emphasized already, the level of details in the rows and columns of the supply and use and input-output tables should be reasonably disaggregated; the tables presented in this chapter are very aggregated merely in order to keep to a manageable format. That applies to the breakdown of products, of industries, of final uses as well as uses of value added. In this sense, the tables of the chapter are both recommended tables and illustrative tables.

• 15.56. The supply and use tables show the following information.

• (a) Table 15.1 S shows the supply of products;

• (b) Table 15.1 U shows:

• (i) The use of products along the rows; and

• (ii) The production and generation of income accounts of industries down the columns.

• 15.57. The main part of the supply table is at basic prices, but there are columns added so as to arrive at total supply at purchasers’ prices in order to balance with the use table at purchasers’ prices. In general, when preparing supply and use tables and making the proper balancing between the two sides, there is always a choice of emphasis between two opposite lines of adjusting statistical data:

• (a) Supply of each product at basic prices could be adjusted to a purchasers’ prices valuation to allow balancing with uses at purchasers’ prices;

• (b) Each of the uses at purchasers’ prices could be adjusted to a basic prices’ valuation to match with supply at basic prices.

• 15.58. In practice, both types of balances may be needed in the process of building up a supply and use table. Both alternatives deal with or require similar kinds of adjustments, i.e., for taxes less subsidies on products and trade and transport margins by products. In fact, the first alternative is not possible without the second, since it is usually not possible to know the columns of taxes on products, subsidies on products and trade and transport margins broken down by products in the supply table unless the distribution among uses of the individual products are known from table 15.2.

Table 15.2.

Supply and use: trade and transport margins, taxes and subsidies on intermediate and final use of products