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Scottish Economic Statistics 2000

Scottish 1996 Input-Output Balances

Input-Output balances provide a complete picture of the flows of products in the economy for a specific year. They give a fully articulated analysis of the economy, illustrating the relationship between producers and consumers and the interdependence of industries. The balances also show the purchases of those products used in the production process and therefore reconcile the output, income and expenditure measures of Gross Domestic Product. They also provide a framework to assess the direct, indirect and induced changes on the whole economy when the demand for a single product increases or decreases.

For example, the 1996 Scottish Use matrix (table 1.5) shows that the construction industry purchased £1.295 billion (excluding taxes and margins - i.e. at producer prices) of services from the domestic finance and business sector, imported £1.341 billion of goods and services from outwith Scotland, paid £1. 980 billion in wages and salaries (income from employment) each of which contributed to total purchases of £7.524 billion. It also shows that the total output of the construction product was £7.584 billion, only £2.426 billion of which was purchased by Scottish industries, £628 million was exported from Scotland, £3.914 billion represented domestic capital formation and the rest was purchased by domestic final demand. The Domestic Output matrix (table 1.6) shows that the construction industry produced £7.524 billion of output (compare with total purchases of the construction industry), £7.403 billion of which was the construction product, along with £85 million of distribution and catering services and £36 million of finance and business services. The construction product was produced by other industries including transport and communication (£60 million), and a total of £7.548 billion of construction product was produced in Scotland as a whole (compare with total demand for construction product at producer's prices). The total supply of construction products at purchaser prices (i.e. including taxes, margins and imports) was £8.211 billion.

 

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