INPUT-OUTPUT TABLE FOR 2004

 

Figure 1 shows how the goods flow in the production-based approach to national accounts. The production in the various lines of business is brought about as each line of business receives a number of goods and services from other lines of business just as some goods and services are imported. Goods are processed in the making of other goods and services which are delivered to other lines of business, where they are used as semi-manufacture or for final use, i.e. consumption, investment, and exports.

 

Input-output tables illustrate the flow of goods. One can see the flows between the lines of business or flows from the businesses to the final use of the goods and services. Thus it is not only possible to follow the economic relationships in the economy but also to undertake a range of economic analyses and impact calculations.

 

The input-output table in Overview 1 shows how goods and services enter the economy via production and imports of goods and services. It shows how goods and services are used in the economy, either as inputs in the production, for direct consumption by the public or private sector, or for investment and exports. The production is divided into six lines of business and the use into five use categories.

 

The columns in Overview 1 show the input each line of business receives. The first column shows, for example, that agriculture and fisheries imported raw materials for DKK 12 million from other companies within the same line of business while deliveries of raw materials (e.g. yard services for fishing boats) from the manufacturing line of business amounted to DKK 45 million.

 

The fishing and agricultural line of business bought raw materials for a total of DKK 241 million from Greenlandic businesses and consumed imported goods for DKK 356 million so that the overall input in this line of business was DKK 597 million. This amount included DKK 3 million in product-related indirect taxes (net), which means that the purchase of commodities of agriculture and fishing was subsidized by DKK 3 million in 2004. Agriculture and fishing received deliveries of DKK 597 million but paid only DKK 594 million.

 

Overview 1

Input-Output Table for Greenland 2004

	Inputs by line of business
	Agriculture and fishing etc.	Production	Supply service	Construction	Market services	Non-market services	Total
	DKK million
Agriculture and fishing etc.	12	760	0	0	116	19	906
Production	45	44	1	73	91	11	265
Supply services	3	13	18	16	249	18	316
Construction	1	7	53	33	323	76	492
Market services	165	92	61	228	1.946	492	2.985
Non-market services	15	3	5	26	23	9	81
Greenlandic businesses, total	241	919	139	376	2.747	625	5.046
Imports	356	263	143	644	1.587	195	3.188
Total increase in basic prices	597	1.181	282	1.020	4.334	819	8.234
Goods-related indirect taxes	-3	-31	-2	-6	-91	-20	-153
Use in buyer prices	594	1.150	280	1.014	4.243	800	8.081
Other production taxes, net	0	1	1	4	16	2	25
Salaries to employees	533	542	133	820	3.937	895	6.860
Gross profits from production	463	-54	133	-101	1.528	97	2.067
Production value	1.591	1.639	548	1.738	9.724	1.794	17.033
	Final use
	Private consumption	Public consumption	Gross investments	Change of stocks	Exports	Total	Total
	DKK million
Agriculture and fishing etc.	211	0	0	0	473	684	1.591
Production	171	0	3	-40	1.239	1.373	1.639
Supply service	230	1	0	0	0	231	548
Construction	0	3	1.242	0	0	1.246	1.738
Market services	2.169	3.410	165	1	995	6.740	9.724
Non-market services	30	1.675	8	0	0	1.713	1.794
Greenlandic lines of business, total	2.812	5.090	1.417	-39	2.707	11.987	17.033
Imports	1.551	5	424	-77	233	2.137	5.325
Tourism-generated income etc.	-240	0	0	0	240	0	8.234
Goods-related indirect taxes	415	0	37	0	-20	431	279
Use in buyer prices	4.538	5.095	1.879	-116	3.160	14.556	22.637

Note: Supply services include supplies of electricity, water, and heating. Market services include services provided for sale. Non-market services include services which are not provided for sale. These include public services and unions and organisations. The employment is measured in persons per year.

Source: Statistics Greenland

 

Overview 2

Input-Output Multipliers for the Final Uses in 2004

	Imports			Employment
	Share of final use	Direct	Direct and indirect	Direct	Direct and indirect
	Per cent			Per person / DKK million
Private consumption	31,3	34,2	48,2	-	1,4
Public consumption	34,9	0,1	22,2	-	3,1
Investments in machinery and means of transport	3,8	77,6	81,6	-	0,5
Investments in construction	8,8	0,0	42,9	-	2,1
Other investments	0,4	2,2	26,0	-	2,2
Stocks	-0,8	66,3	91,5	-	0,4
Exports	21,7	8,0	37,9	-	1,9

Source: Statistics Greenland

 

Overview 1 shows how the production value of each line of business is used. Agriculture and fishing, for instance, produced for DKK 1.591 million in 2004. Of this production, raw materials for DKK 760 million were delivered to production businesses, particularly the fishing industry. Agriculture and fishing delivered goods for a total of DKK 906 million to Greenlandic lines of business. In addition to this, this line of business delivered goods for DKK 211 million for private consumption and goods for DKK 473 million for export.

 

Overview 3

Input-Output for Individual Lines of Business in 2004

		Imports		Employment
	Share of GFI	Direct	Direct and indirect	Direct	Direct and indirect
	Per cent			Per person / DKK million
Agriculture and fishing etc.	11,2	25,0	30,1	1,6	2,0
Production	5,4	12,6	30,9	1,4	2,6
Supply service	3,0	26,2	34,8	0,9	1,4
Construction	8,1	37,1	43,8	1,8	2,2
Commerce etc.	13,5	14,4	22,7	2,0	2,5
Transport, postal services and telecommunication	13,5	21,8	32,7	1,0	1,7
finance and insurance	9,9	9,9	19,8	1,0	1,6
Public and personal service	35,5	14,4	22,0	2,6	3,2

Source: Statistics Greenland

 

Figure 1

Goods Flows in the Production-Based National Accounts

 

Taking the input-output-table as one's point of departure, it is possible to calculate a number of multipliers. Input-output multipliers are calculations of the effects which an increase in demand will have. Should private consumption increase, the demand of the households for goods will also increase. Some of these goods are imported; some are delivered by Greenlandic lines of business.

 

The Overview shows input-output multipliers for both direct and total effects on import and employment of an increase in each final use category. It can be seen, for instance that 34,2 per cent would be connected to direct imports while the total imports would amount to 48,2 per cent. An increase in the private consumption of DKK 1 million will entail imports for DKK 342.000 for direct consumption as the total imports, including goods and services for the production lines of business, are increased by DKK 482.000. As a result of the increased demand for products from the Greenlandic lines of business, an increase in the private consumption of DKK 1 million will result in an increase of the employment by 1,4 persons.

 

Overview 3 shows input-output multiplicators on imports and employment following an increase in demand for the output of each line of business. An increase of DKK 1 million in the demand for goods from production businesses will result in a direct effect on the employment of 1,4 persons. The demand of the production businesses for inputs from other lines of business will also increase if the demand from the other lines of business increases. The total employment will, as a consequence, not only increase by 1,4 persons but by 2,6 persons.