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Reconstructing China's Supply-Use and Input-Output Tables in Time Series

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  • Harry WU
  • ITO Keiko

Abstract

This paper documents the procedures of constructing China's input-output tables (IOTs) and supply-use tables (SUTs) in time series for the period 1981-2010 under the East Asian Industrial Productivity/China KLEMS Project. We begin with basic data problems in terms of inconsistencies in concept, coverage, and classification of Chinese national accounts (NAs) and biases of using the NA implicit gross domestic product (GDP) deflators. We then introduce the key procedures in: 1) reconstructing national production accounts as national and industry-level "control totals", 2) constructing industry-level producer price indices, 3) converting 1981 material product system (MPS)-type IOT to the system of national accounts (SNA) standard to match China's five full-scale IOTs (1987, 1992, 1997, 2002 and 2007), 4) constructing industry-level export and import accounts to match each benchmark IOT, and 5) estimating supply-use tables in time series using the SUT-RAS approach from the World Input-Output Database (WIOD), and based on the estimated SUTs, we finally derive China's input-output accounts in time series. Furthermore, we adopt the chained-Laspeyres deflation approach to estimating SUTs in constant prices. With these procedures, we have arrived at an annual GDP growth rate of 9.4% instead of the official estimate of 10.2% for the full period. However, at the broad-sector level, we show a much faster industrial GDP growth at 15.6% per annum instead of the official estimate of 11.9% per annum. As for non-industrial GDP growth, our estimate is 5.2% per annum rather than the official estimate of 8.9% per annum.

Suggested Citation

  • Harry WU & ITO Keiko, 2015. "Reconstructing China's Supply-Use and Input-Output Tables in Time Series," Discussion papers 15004, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:15004
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    References listed on IDEAS

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    1. Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages 374-403, June.
    2. Unido, 2011. "International Yearbook of Industrial Statistics 2011," Books, Edward Elgar Publishing, number 14310.
    3. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(3), pages 249-283.
    4. repec:dgr:rugggd:gd-116 is not listed on IDEAS
    5. Andreas (Andy) Jobst & Harry X. Wu, 2008. "Measuring China’s Economic Performance," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 9(2), pages 13-44, April.
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    Cited by:

    1. Zheng, Haitao & Fang, Qi & Wang, Cheng & Jiang, Yunyun & Ren, Ruoen, 2018. "Updating China's input-output tables series using MTT method and its comparison," Economic Modelling, Elsevier, vol. 74(C), pages 186-193.
    2. Chen, Kaiji & Higgins, Patrick & Zha, Tao, 2024. "Constructing quarterly Chinese time series usable for macroeconomic analysis," Journal of International Money and Finance, Elsevier, vol. 143(C).

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