The FEALAC IOT A powerful tool for Policy Analysis FEALAC...Introduction • Integrated input-output table for 18 countries: 10 South America (SAIOT) with MESOAMERICA Mexico and Central

Santiago, October 7, 2020

The FEALAC IOT

A powerful tool for

Policy Analysis

José Durán LimaChief of the Regional Integration Unit,

Division of International Trade and Integration,

ECLAC, United Nations

2010-2013 2014 2015 2016 2017 2018 2019

Works withNational IOT;International Trade Data

Assessment:Eora MRIO -

GTAP - WIOD

Commissioning Project ECLAC IPEA

(2013)

Methodologicalworkshopsin Brasilia

First Results for 5 countries;ECLAC and consultant validation analysis

Validation workshopSantiago

Preliminary South American IOT;

8 countries18/11/2015

Relaunch of South American IOT;

8 countries6-07-2016

Project in continuous development: we have been working to get a

more recent year (2014) and expand the Regional

IOT to a global IOT

Launch ofAndean

Community IOT(2005 and 2011)

Start of integration of the Regional IOT into

a Global IOT

Launch the first Version of FEALAC

IOT

Lauch of theMERCOSUR IOT

(2005-2011)(25-06-2018)

South-American IOT 2011

(1-08-2018)

Launch of the Central American

IOT and First Version of the Regional IOT(July 2019)

SIECA

2020

ORIGIN, HISTORY AND DEVELOPMENT

Introduction

• Integrated input-output table for 10 countries: Argentina, Bolivia, P. S., Brazil,

Chile, Colombia, Ecuador, Peru, Paraguay, Uruguay and Venezuela, B. R.

• A single base year: 2005

• A single valuation: current dollars at basic prices.

• 40 sectors, from which 33 sectors are goods and 7 services.

• The sectors were selected to allow further analysis of regional value chains.

• Trade partners: (originally 10 in SAIOT for 2005)• Mexico, Canada, USA and China.• Associations or group of countries:

• Central American Common Market (CACM), • Caribbean Community (CARICOM), • Rest of Latin American and Caribbean (LAC), • EU27,• Rest of Asia and • Rest of World.

• Interconnects transactions of intermediate goods used in the production process

of the countries represented in the matrix.

THE FIRST GREATEST ACHIEVEMENT: ASSEMBLING A MATRIX FOR SOUTH AMERICA

First Achievement: Assembling an IOT for South America

We had a puzzle with different pieces

We work to have pieces of the same puzzle

US$ dollarbasic prices

Same sectors: 40Same year: 2005

Introduction

• Integrated input-output table for 18 countries: 10 South America (SAIOT) with

MESOAMERICA Mexico and Central American (Costa Rica, El Salvador,

Guatemala, Honduras, Nicaragua, Panama and Dominican Republic)

• A single base year: 2011

• A single valuation: current dollars at basic prices.

• 40 sectors, from which 33 sectors are goods and 7 are services.

• Trade partners: (originally 10 in SAIOT for 2005) (Now include Asia Pacific 16

countries)

THE SECOND GREATEST ACHIEVEMENT: EXPAND THE MATRIX FROM 10 TO 18 COUNTRIES

16 FEALAC extra regional partners:Australia, Brunei, Cambodia, Japan, China, Thailand, Malaysia, Mongolia, New Zealand, Laos, Myanmar, Mongolia, Indonesia, Philippines, Singapore, Vietnam.

BrazilPerú

Chile

P.S. Bolivia

Argentina

Ecuador

Colombia

B.R. Venezuela

Paraguay

Uruguay

Mexico

GuatemalaEl Salvador

HondurasNicaragua

Costa RicaPanama

Second achievement: Assembling a Latin America IOT

Dominican Rep.

US$ dollarbasic prices

Same sectors: 40Same year: 2011

Finally we will have all pieces of the same puzzle

18 countries

The starting point: Statistical information required at the national-level

• IOT, if any, or in its absence Supply and Use Tables

• Opening of Intermediate Utilization, differentiation between domesticIU and imported IU (by type of trade –intermediate and final- bypartner).

• Information at basic prices corresponding to the year 2005, 2011, and/or2014

• Value added and its decomposition (taxes, remuneration, capital - only2005 in LAC)

• Trade data by HS (especially of the imports in CIF and FOB)

• Service statistics by partner (Brazil, Colombia, Costa Rica, Chile), andestimates.

• (Sectorial employment vector)

Introduction

Suplly and use Table (SUT) Input-output Matrix

S1 S2 . . . Sn

C1

C2

.

.

. Output

.

.

.

.

Cm

C1

C2

.

.

.

.

.

.

.

Cm

Output

Fina

l Con

sum

ptio

n

Inve

stm

ent

Tota

l D

emand

Intermediate

Consumption

Value Added

Tota

l Su

pply

Marg

ins

Taxe

s on

pro

duct

s

Impo

rts

Expo

rts

Input-output Matrix Input-output Matrix

S1 S2 . . . Sn

S1

S2

.

.

.

Sn

S1

S2

.

.

.

Sn

Output

Fina

l Con

sum

ptio

n

(M)

Inve

stm

ent

(M)

Value Added

Domestic (D)

Intermediate

Consumption (IC)

Fina

l Con

sum

ptio

n (D

)

Inve

stm

ent

(D

)

Expo

rts

Tota

l D

emand

= O

utpu

t

Imported (M)

Intermediate

Consumption (IC)

Total Inputs (D+M)

TICA

The starting point: National SUT & IOT

Introduction

1 2 3 4 5 6 7 8 9 10

Sector General Classification AR BO BR CH CO EC PA PE UR VE

I Agriculture, forestry, hunting and fishing 7 5 2 12 5 11 5 6 8 9

II Oil and mining 5 1 3 6 4 4 5 1 1 8

III Food, beverages and snuff 21 7 2 16 10 17 16 8 13 15

IV Textiles, apparel and footwear 8 1 3 4 4 3 6 3 5 6

V Wood, pulp and paper 6 2 3 6 3 2 5 2 3 3

VI Chemicals and Pharmaceuticals 7 2 9 6 2 3 6 2 4 4

VII Rubber and plastic 4 0 1 1 1 2 1 0 1 2

VIII nonmetallic minerals 4 1 3 4 1 2 3 1 1 7

IX Metals and metal products 6 2 4 3 1 2 4 2 0 5

XIX Machinery and equipment 12 1 4 2 2 1 3 1 1 6

XI Vehicles and their parts and components 6 0 4 1 1 1 1 0 1 2

XII Other manufacturing 4 1 1 3 3 2 2 1 1 1

XIII Electricity, gas and water 4 1 1 5 3 2 2 1 1 2

XIV Construction services 1 1 1 4 2 1 1 1 1 2

XV Wholesale and retail 3 1 1 3 1 1 1 1 1 2

XVI Transport services 13 1 1 8 4 1 5 1 2 4

XVII Hotels and restaurants 2 1 1 2 1 2 2 1 1 2

XVIII Postal services and telecommunications 4 1 1 4 1 2 2 1 1 2

XIX Financial services and business activities 23 1 2 10 3 3 2 1 3 11

XX Other services 23 5 8 11 9 9 29 1 5 28

Total sectors 163 35 55 111 61 71 101 35 54 121

Source: ECLAC, on the basis of national IOMs and/or SUTs.

Many

differences

inside the

structure of

the

classifications

of the sectors.

Depending on

what is

important in

each country.

The starting point: National SUT & IOT

Heterogeneity in the compilation of South American data

• Base years and sectoral structure were different between countries

• National teams contributed to the harmonization of each national matrixto a set of 40 selected sectors

AR

GEN

TIN

A

BR

AZI

L

BO

LIV

IA

CH

ILE

CO

LOM

BIA

ECU

AD

OR

PAR

AG

UAY

PER

U

UR

UG

UAY

VEN

EZU

ELA

ISIC 3.1 4.0 3.1 3 y 3.1 3 y 3.1 4 4 3 3 4

Year 20042010 (IOT)2011 (SUT) 1990 2013 2012 2010 2011 2007 2012 2007

IOT or SUT 124X95128X68127x67

35 X 35 111X111 61 X 61 69x69 46X46 54 x 54 50 x 50 99 x 99

Source MECON IBGE INE BCCH DANE BCE BCP INEI BCU BCV

40X402011SOUTH AMERICAN IOT

CO

STA

RIC

A

EL S

ALV

AD

OR

GU

ATEM

ALA

HO

ND

UR

AS

MEX

ICO

NIC

AR

AG

UA

PAN

AM

A

DO

MIN

ICA

N

REP

UB

LIC

ISIC 4 4 3.1 4 4 3 3 4

Year 2011 2014 2011 2011 2014 2009 2012 2011

IOT or SUT 40 X 40 183 X 86 225 X 134 95 X95 40 X 40 447 X 137 176 X 77 69 X 40

Currency Colón US$ Dollar Quetzales Lempiras Pesos Córdobas Balboas Pesos

SourceCentral Bank of Costa Rica

Central Bank of The Republic of

EL Salvador

Bank ofGuatemala

Central Bank of Honduras

INEGICentral Bank oF

NicaraguaINEC

Central Bank of Dominican Republic

40X402011

MEXICO, DOM. REP. AND CENTRAL AMERICA IOT

Heterogeneity in the compilation of data from MESOAMERICA

• Base years and sectoral structure were different between countries

• Central Banks and Statistic offices contributed to match each national matrix to the set of 40 pre-defined sectors

Introduction

The main difficulties were:• Sectors across countries were not homogeneous

✓ Reallocated sectors.✓ Sectors were opened or merged ✓ Intersectoral single converter (harmonization of results across countries)✓ Secondary information was necessary for the opening of sectors

• Separation of exports and imports of goods across sectors and countries was not identical✓ Single converter for all countries

Assembly adjustments were not simple, and it was necessary to make several modifications

Introduction

Forty sectors selected to join a South American input-output matrix

Sector Description ISIC Code (Rev. 3)

s1 Agriculture and forestry 0111 0112 0113 0121 0122 0130 0140 0200

s2 Hunting and fishing 0150 0500

s3 Mining (energy) 1010 1020 1030 1110 1120 1200

s4 Mining (non-energy) 1310 1410 1421 1422 1429

s5 Meat and meat; dairy milk 1511 1512 1514 1520

s6 Grinding, baking and pasta 1531 1532 1541 1544

s7 Sugar and confectionery products 1542 1543

s8 Other food products 1513 1549

s9 Drinks 1551 1552 1553 1554

s10 Snuff products 1600

s11 Textiles 1711 1712 1729 1730

s12 Garments 1721 1722 1723 1810 1820 1911 1912

s13 Footwear 1920

s14 Wood and products of wood and cork 2010 2021 2022 2023 2029

s15 Pulp, paper, paper, printing and publishing 2101 2102 2109 2211 2212 2213 2219 2221 2222 2230

s16 Coke, refined petroleum and nuclear fuel 2310 2320 2330

s17 Basic chemicals 2411 2412 2413

s18 Other chemicals (excluding pharmaceuticals) 2421 2422 2424 2429 2430

s19 Pharmaceutical 2423

s20 Rubber and plastic 2511 2519 2520 Rubber and plastic (1)

s21 Nonmetallic minerals 2610 2691 2692 2693 2694 2695 2696 2699 Nonmetallic minerals (1)s22 Iron and Steel 2710 2731

s23 Non-ferrous metals 2720 2732

s24 Metal fabricated metal products (excluding machinery and equipment)2811 2812 2813 2891 2892 2893 2899

s25 Machinery and equipment (excluding (excluding electrical machinery) 2911 2912 2913 2914 2915 2919 2921 2922 2923 2924 2925 2926 2927 2929 2930

s26 Office equipment (including computer equipment) 3000

s27 Machinery and electrical appliances 3110 3120 3130 3140 3150 3190 3210

s28 Radio, television and telecommunications equipment team 3220 3230

s29 Optical medical equipment and precision instruments 3311 3312 3313 3320 3330

s30 Motor vehicles, trailers and semi-trailers 3410 3420 3430

s31 Aircraft 3530

s32 Other transport equipment transport 3511 3512 3520 3591 3592 3599

s33 Other articles: recycling, furniture and other 3610 3691 3692 3693 3694 3699 3710 3720 Other manufacturing (1)s34 Electricity, gas and water water 4010 4020 4030

s35 Construction 4510 4520 4530 4540 4550

s36 Transport 6010 6021 6022 6023 6030 6110 6120 6210 6220 6301 6302 6303 6304 6309

s37 Post and telecommunications 6411 6412 6420

s38 Finance and insurance 6511 6519 6591 6592 6599 6601 6602 6603 6711 6712 6719 6720

s39 Services to businesses of all kinds 7010 7020 7111 7112 7113 7121 7122 7123 7129 7130 7210 7220 7230 7240 7250 7290 7310 7320 7412 7413 7414 7421 7422 7430 7491 7492 7493 7495 7499

s40 Other services 4100 5010 5020 5030 5040 5050 5110 5121 5122 5131 5139 5141 5142 5143 5149 5150 5190 5211 5219 5220 5231 5232 5233 5234 5239 5240 5251 5252 5259

5260 5510 5520 7411 7494 7511 7512 7513 7514 7521 7522 7523 7530 8010 8021 8022 8030 8090 8511 8512 8519 8520 8531 8532 9000 9111 9112 9120 9191

9192 9199 9211 9212 9213 9214 9219 9220 9231 9232 9233 9241 9249 9301 9302 9303 9309 9500 9900

Source: ECLAC on the basis of IOM and / or national SUT, considering on the work of the respective national teams.

Metals and metal products (3)

Machinery and equipment (5)

Vehicles and their parts and components (3)

Agriculture, forestry, hunting and fishing (2)

Oil and mining (2)

Food, beverages and snuff (6)

Textiles, apparel and footwear (3)

Wood, pulp and paper (2)

Chemicals and Pharmaceuticals (4)

Man

ufa

ctu

rin

g (2

9)

Services (7)

Each National IOTs was reclassified to 40 Sectors

Selected sectors for the harmonization of SA IOT

Primary

(4)

Introduction

AR BO BR CH CO EC PA PE UR VE

1 s1 Agriculture and forestry F D F F F F F F F F

1 s2 Hunting and fishing F D D D D F D F F F

2 s3 Mining (energy) D D F F F F NP F NP F

2 s4 Mining (non-energy) F F D F F F D F A F

3 s5 Meat and meat; dairy milk D A F D D D D D D D

3 s6 Grinding, baking and pasta F A D F D F D F F F

3 s7 Sugar and confectionery products F A D D D F D F D F

3 s8 Other food products F A D F F F F F F F

3 s9 Drinks F A D F D F A F F F

3 s10 Snuff products D D D D D D A D D D

4 s11 Textiles F D A F F F A F F F

4 s12 Garments D D A D D D A D D D

4 s13 Footwear F D A D D D D F F D

5 s14 Wood and products of wood and cork F D D D D D D F D D

5 s15 Pulp, paper, paper, printing and publishing F F D F F D D F F F

6 s16 Coke, refined petroleum and nuclear fuel D D D D D D D D D D

6 s17 Basic chemicals F D A D A D A F F D

6 s18 Other chemicals (excluding pharmaceuticals) F F A A A D A F F F

6 s19 Pharmaceutical D D A A A D A D D D

7 s20 Rubber and plastic F D A F D F A F F F

8 s21 Nonmetallic minerals F F D F D F D F D F

9 s22 Iron and Steel D D A D A D A D A F

9 s23 Non-ferrous metals D D A D A D A D A D

9 s24 Metal fabricated metal products (excluding machinery and equipment)F D A D A D A F A D

10 s25 Machinery and equipment (excluding (excluding electrical machinery) F D A D D D A F A F

10 s26 Office equipment (including computer equipment) D D A A A D A A A D

10 s27 Machinery and electrical appliances F F A A A D A D A D

10 s28 Radio, television and telecommunications equipment team F D NP A NP D A A A NP

10 s29 Optical medical equipment and precision instruments D D A A A F NP A A D

11 s30 Motor vehicles, trailers and semi-trailers F F A A A D NP A A D

11 s31 Aircraft D D A A A NP NP A A NP

11 s32 Other transport equipment transport D D A A A D A A A D

12 s33 Other articles: recycling, furniture and other F D D F F F D F D F

13 s34 Electricity, gas and water water F D D F F D A D D D

14 s35 Construction D D D D F D D D D F

15 s36 Transport F A D F F F D F F F

16 s37 Post and telecommunications F A D D D F D F D F

17 s38 Finance and insurance F D D F D F D F D F

18 s39 Services to businesses of all kinds D F F D D D F F D F

The Main difficulties were:

• There was no complete information in some

countries to update the matrix to the base

year.

• The sectors between countries were not

homogeneous

• Reallocated sectors.• They were made open and mergers

sectors• Intersectoral single converter

• Sectorization of exports and imports of

goods between countries is not identical

• Single converter for all countries• The geographical distribution of services

trade flows is not yet optimal.

Mapping of processes:• Direct assignment (D). The same sector opening in

the 40 sectors.• Fusion or merge (F). Two or more sectors were

added (from two or more to one)• Opening (A). From one to two or more.• Sector without production (NP). Sectors for which

there was no significant production.

Adjustments made at national level.

Introduction

















































































Direct assignment (D).

Fusion or merge (F).

Sector Adjustments

Introduction

















































































Opening (A).

Sector without production

(NP).

Sector adjustments

Introduction

Input-output Matrix Country A

S1 S2 . . . S40

S1 Exports (X)

S2

.

.

.

S40

S1

S2

.

.

.

S40

S1

S2

.

.

.

S40

S1

S2

.

.

.

S40

Total Output TOCA

Inve

stm

ent

(M) FI

CA

fro

m C

C

Fina

l Con

sum

ptio

n

(M) FC

CA

-RoW

Inve

stm

ent

(M) FI

CA

-RoW

Rest of

Exports

from CA

to RoW

To Intermediate

Consumption

Fina

l Con

sum

ptio

n

(M) FC

CA

from

CB

Inve

stm

ent

(M) FI

CA

fro

m C

B

Fina

l Con

sum

ptio

n

(M) FC

CA

from

CC

Value Added

VACA

Fina

l Con

sum

ptio

n

(M) FC

CA

-CB

IC

(M-Imported)

Country A

from Country C

MZ CA-CC

IC

(M-Imported)

Country A

from RoW

MZ CA-RoW

Total Inputs (D+M)

TICA

Inve

stm

ent

(M) FI

CA

-CB

Fina

l Con

sum

ptio

n

(M) FC

CA

-CC

Inve

stm

ent

(M) FI

CA

-CC

Intermediate

Consumption

(D-Domestic)

Country A

ZCA-CA

Fina

l Con

sum

ptio

n

(Dom

esti

c) F

CCA

-CA

Inve

stm

ent

(Dom

esti

c)

FICA

-CA

Tota

l D

emand

=

Tota

l O

utpu

t T

OCA

Intermediate

Consumption (IC)

(M-Imported)

Country A

from Country B

MZ CA-CB

CA t

o CB

CA t

o CC

4 main steps1. Input-output matrices from each

of the participating countries

(40X40) (US$ 2005 - 2011 - 2014)

were used.

2. They were opened by imports of

intermediate goods by the

participating partners.

3. It was necessary to distinguish

between intermediate and final

use imports.

4. Assembly process:

- (bilateral) trade control

- balance check

- vector adjustment

Input-output Matrix Input-output Matrix

S1 S2 . . . S40

S1

S2

.

.

.

S40

S1

S2

.

.

.

S40

Output

Fina

l Con

sum

ptio

n

(M)

Inve

stm

ent

(M)

Value Added

Domestic (D)

Intermediate

Consumption (IC)

Fina

l Con

sum

ptio

n (D

)

Inve

stm

ent

(D

)

Expo

rts

Tota

l D

emand

= O

utpu

t

Imported (M)

Intermediate

Consumption (IC)

Total Inputs (D+M)

TICA

First

Step

40X40

Second and Third Step

The construction process of the IO matrix was

performed in four steps

Introduction Input-output Matrix

Country A Country B Country C Country A Country B Country C

S1 S2 . . . S40 S1 S2 . . . S40 S1 S2 . . . S40

S1

S2

.

.

.

S40

S1

S2

.

.

.

S40

S1

S2

.

.

.

S40

S1

S2

.

.

.

S40

Total Output TOCA Total Output TOCB Total Output TOCC

Expo

rts

(X)

CA t

o RoW

Expo

rts

(X)

CB t

o RoW

Tota

l D

emand

=

Tota

l O

utpu

t T

OCB

Expo

rts

(X)

CC t

o RoW

Tota

l D

emand

=

Tota

l O

utpu

t T

OCC

Fina

l Con

sum

ptio

n

(M) FC

RoW

fro

m C

A

Inve

stm

ent

(M) FI

RoW

fro

m C

A

Fina

l Con

sum

ptio

n

(M) FC

RoW

fro

m C

B

Inve

stm

ent

(M) FI

RoW

fro

m C

B

Fina

l Con

sum

ptio

n

(M) FC

RoW

fro

m C

C

Fina

l Con

sum

ptio

n

(M) FC

CCfr

om

CB

Inve

stm

ent

(M) FI

CC f

rom

CB

Fina

l Con

sum

ptio

n

(Dom

esti

c) F

CCC-C

C

Inve

stm

ent

(Dom

esti

c) F

ICC-C

C

Transport and Insurance

Services IC TIS-ICCA TIS-ICCB TIS-ICCC

Inve

stm

ent

(M) FI

RoW

fro

m C

C

TIS-FDCB TIS-FDCB

Inve

stm

ent

(M) FI

CA

fro

m C

B

Fina

l Con

sum

ptio

n

(M) FC

CA

from

CC

Inve

stm

ent

(M) FI

CA

fro

m C

C

Fina

l Con

sum

ptio

n

(M) FC

CB

from

CA

Inve

stm

ent

(M) FI

CB

fro

m C

A

Fina

l Con

sum

ptio

n

(Dom

esti

c) F

CCB

-CB

Inve

stm

ent

(Dom

esti

c) F

ICB

-CB

Fina

l Con

sum

ptio

n

(M) FC

CB

from

CC

Inve

stm

ent

(M) FI

CB

fro

m C

C

TIS-FDCA

Fina

l Con

sum

ptio

n

(M) FC

CCfr

om

CA

Inve

stm

ent

(M) FI

CC f

rom

CA

IC

(M-Imported)

Country C

from RoW

MZ CC-RoW

Total Inputs (D+M)

TICA

Value Added

VACC

IC

(M-Imported)

Country A

from RoW

MZ CA-RoW

Total Inputs (D+M)

TICA

Value Added

VACA

IC

(M-Imported)

Country B

from Country A

MZ CB-CA

Intermediate

Consumption (IC)

(D-Domestic)

Country B

ZCB-CB

IC

(M-Imported)

Country B

from Country C

MZ CB-CC

IC

(M-Imported)

Country B

from RoW

MZ CB-RoW

Total Inputs (D+M)

TICB

Value Added

VACB

IC

(M-Imported)

Country A

from Country B

MZ CA-CB

IC

(M-Imported)

Country A

from Country C

MZ CA-CC

IC

(M-Imported)

Country C

from Country A

MZ CC-CA

IC

(M-Imported)

Country C

from Country B

MZ CC-CB

Intermediate

Consumption (IC)

(D-Domestic)

Country C

ZCC-CC

Fina

l Con

sum

ptio

n

(M) FC

CA

from

CBIntermediate

Consumption (IC)

(D-Domestic)

Country A

ZCA-CA

Fina

l Con

sum

ptio

n

(Dom

esti

c) F

CCA

-CA

Inve

stm

ent

(Dom

esti

c) F

ICA

-CA

Tota

l D

emand

=

Tota

l O

utpu

t T

OCB

Tota

l Export

s (X

)

CA

Tota

l Export

s (X

)

CB

Tota

l Export

s (X

)

CC

From:

Fourth

Step

A final adjustment to ensure that exports to the Rest of the World are equal to the total exports of the country less the exports to the final demand less the exports to the intermediate demand (adjusted by the imports reported by each country), in addition to the estimations of the transport and insurance services.

Assembly process:

Intermediate Use

(18 LAC countries)

Final Use

(18 LAC countries

Exports

(Asia Pacific and R of World)

Product

Gross Valu

e

LAC

Im

po

rts

Argentina 40x

40

40x

2 40x1 40x1

Brazil40x

40

Costa Rica

Dominican Rep.

Mexico

….

Uruguay

Venezuela

Asi

an a

nd

RO

W Im

po

rts United States

40x

40

Canada Q

European Union

(EU)

India

Australia

Brunei

Cambodia

Japan

…

R of World

Tax1x4

0

Insurance and fr

eight

Value added

Product 1x4

0

18 LAC countries

with 55 partners


• Development of tool to promote the integration of FEALAC

countries into intraregional and bi-regional value chains.

• To strengthen data quality and expertise of national

institutions in FEALAC member countries to develop

evidence-based industrial and trade policies.

• The project was developed between 2018 and 2020

THE PROJECT TO ACHIEVE A FEALAC IOT

IOT UpdateI

Harmo-nizationII

Regional IOT in

LAC and Asia

IIIFEALAC MRIO

StudiesIVCapacity

BuildingV

2018 2019 2020

Latin AmericaAsia-Pacific

FEALAC IOT

ECLACESCAP

+ADB

OECD

✔ADBECLAC

✔ ✔✔

# FEALAC 25 sectors Broad sectors

s1 Agriculture, hunting, forestry and fishing Primary Products(2 sectors)s2 Mining and quarrying

s3 Food products, beverages and tobacco

Manufactures(11 sectors)

s4 Textiles, textile products, leather and footwear

s5 Wood, cellulose and papers6 Chemicals and petrochemicals7 Rubber and plastics productss8 Other non-metallic mineral productss9 Basic metals and Fabricated metal products

S10Machinery and equipment, necS11Electric and optical equipmentS12Motor vehicles and transport equipments13 Manufacturing nec; recycling s14 Electricity, gas and water supply

Services(7 sectors)

s15 Constructions16 Transport and storageS17Post and telecommunicationsS18Financial intermediationS19Business services of all types20 Other services

Phase 1: 20 selected sectors for the FEALAC IOT First product including Central American countries

Source: Working Group ECLAC-ESCAP-ADB / OCDE

IOT-

FEALAC 25 Description GIOT FEALAC

IOT-FEALAC

(20)

Sectors in ADB

MRIOT (35) ECLAC IOT (40)

01 Agriculture, hunting, forestry and fishing S1 1 s1,s2

02 Mining and quarrying S2 2 s3,s4

03 Food products, beverages and tobacco S3 3 s5,s6,s7,s8,s9,s10

04 Textiles, textile products, leather and footwear S4 4,5 s11,s12,s13

05 Wood and products of wood and cork S5 6 s14

06 Pulp, paper, paper products, printing and publishing S5 7 s15

07 Coke, refined petroleum products and nuclear fuel S6 8 s16

08 Chemicals and chemical products S6 9 s17,s18,s19

09 Rubber and plastics products S7 10 s20

10 Other non-metallic mineral products S8 11 s21

11 Basic metals S9 12* s22,s23

12 Fabricated metal products S9 12* s24

13 Machinery and equipment S10 13 s25

14 Computer, Electronic and optical equipment S11 14* s28,s29

15 Electrical machinery and apparatus, nec S11 14* s27

16 Motor vehicles, trailers and semi-trailers S12 15* s30,s31

17 Other transport equipment S12 15* s32

18 Manufacturing nec; recycling S13 16 s33

19 Electricity, gas and water supply S14 17 s34

20 Construction S15 18 s35

21 Transport and storage S16 23,24,25,26 s36

22 Post and telecommunications S17 27 s37

23 Financial intermediation S18 28 s38

24 Business services of all type S19 30 s39

25 Other services S20 29,30,31,32,33,34,35 s40

Phase 1B: 25 selected sectors for the FEALAC IOT

Source: Working Group ECLAC-ESCAP-ADB

PROGRESS SUMMARY (Phases 2 to 5)

• In Latin America, ECLAC has successfully concluded an Input Output Table

(IOT) for 18 LAC countries, connected with Asia Pacific (2011,2014) 40

sectors Available on-line.

• Asian Development Bank and ESCAP concluded a first Asia Pacific IOT

including Latin American countries, 35 sectors (2007,2011,2017)

• ECLAC concluded Latin American IO Table of 20/25 Sectors including

LACs and Asia Pacific FEALAC countries (71/79 countries) 2011 and 2017

• Data harmonization with OCDE on trade in value added and ADB MRIO.

• ESCAP and ECLAC, jointly with the ADB, organized Capacity Building

“Value chain development for deeper integration of FEALAC” to present

and discuss Asia Pacific results

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https://www.cepal.org/es/eventos/matrices-insumo-producto-como-herramienta-politicas-comerciales-industriales-america-latina

https://www.unescap.org/events/technical-workshop-value-chain-development-deeper-integration-fealac-asian-perspectives

From ECLAC-IOT and

ADB-MRIO

to

FEALAC IOT

Intermediate Use

(18 LAC countries)

Final Use

(18 LAC countries

Exports

(Asia Pacific and R of World)

Product

Gross

Value

LAC

Im

po

rts

Argentina 40x

40

40x

2 40x1 40x1

Brazil40x

40

Costa Rica

Dominican Rep.

Mexico

….

Uruguay

Venezuela

Asi

an a

nd

RO

W Im

po

rts United States

40x

40

Canada Q

European Union

(EU)

India

Australia

Brunei

Cambodia

Japan

…

R of World

Tax1x4

0

Insurance and fr

eight

Value added

Product 1x4

0


TO PRODUCE THE GLOBAL MATRIX, THIS SPACE WAS COMPLETED

WITH THE ADB MRIO

Intermediates use[…]

Co

nsu

mp

tio

n

Gro

ss F

ix c

apit

al

Co

nsu

mp

tio

n

Gro

ss F

ix c

apit

al

country 1 x ind. 1

[…]

country 1 x ind. 25

[…]

country 79 x ind. 1

[…]

country 79 x ind. 25

Total Intermediate input total

Total Taxes less subsidies on products

Total (VA) Value Added at basic prices

Output (X) (X) Output at basic prices

(Z) intermediate

transactions (FD) (X)

countries &

industries Final Demand Output

(X)

ctry 1 x ind 1 […] ctry 79 x ind 25

Country 1 Country 79

FEALAC IOT STRUCTURE (2011 (78 countries + RoW, 25 sectors)

2007, 2011 and 2017(71 countries + ROLAC + RWLD

20 sectors)

ECLAC

Central

America

ECLAC

South

America

WIOD

MRIO ADB

FEALAC IOT STRUCTURE (2011 (78 countries, 25 sectors)

MRIO ADB2007,2011,2017

71 countries + ROLAC + RoW

MRIO ADB – ECLAC - ESCAP2007,2011,2017

78 countries + Rest of the World

Costa Rica, El Salvador, Guatemala,

Honduras, Nicaragua, Dominican Republic and Panama

FEALAC

Global IOT

79 / 71 countries

25 / 20 industries

ECLAC

IOT

2005 (10 countries)

2011 (18 countries)

2014 (18 countries)

40 sectors;

25 sectors;

20 sectors

Asian Development

Bank / ESCAP

2017-2017

2007 (71 countries)

2011-2017

(71 countries)

35 sectors

38 sectors (2011)*

OCDE

Trade in Value added

Project

2005-2015

2005-2015

(64 countries)

36 industries

Source: Working Group ECLAC-ESCAP-ADB / OCDE

27

2007, 2011, 2017

FEALAC MULTIREGIONAL IOT

* recently opened sectors (2011)

• Include all countries of FEALAC (Asia and Latin America)

• Solve Lack of data: Myanmar, Cuba and Surinam.

• Waiting for official information from the interested countries

• integration with other initiatives is expected. It would be the next logical step.Why?:

1. ADB MRIO has more countries than OECD TIVA in the case of Asia

2. ECLAC has more countries than OECD TIVA for Latin America

3. The OECD TIVA initiative has complementary countries that ECLAC and ADB do nothave.

4. To fulfill the objective, all TIVA initiatives must converge at sector level to integrateinto a Global Matrix.

Challenges and Future Steps(ECLAC – ADB – ESCAP)

Lastly and not less important

• Compatibility of sectoral disaggregation between allTIVA initiatives.

• Shared converters (For production and trade);

• Shared databases and methodology;

• Organizing workshops with national institutions to sharebest practices to help to strength base data.

We have a fertile field of cooperation between ADB,ESCAP and ECLAC

Challenges and Future Steps

Santiago, October 7, 2020

The FEALAC IOT

A powerful tool for

Policy Analysis

José Durán LimaChief of the Regional Integration Unit,

Division of International Trade and Integration,

ECLAC, United Nations

Documents

The FEALAC IOT A powerful tool for Policy Analysis FEALAC...Introduction • Integrated input-output table for 18 countries: 10 South America (SAIOT) with MESOAMERICA Mexico and Central