Matrix Application:

Input-Output Table

Dr. Mansi Awasthi

August 23, 2022 | Tuesday
 Introduction

• IOT for the year 1968-69 was published with 60 sectors and subsequently the tables
consisted of 115 sectors since 1973-74 till 1998-99. The IOTs for 2003-04 and the current
one (2007-08) contain 130 sectors.

• The present case in point pertains to the year 2007-08.

• Basic Structure of IOT: A matrix of the inter-industry transaction for an economy, which
shows how the output from one sector may become an input to another industrial sector.
The economy is presented such that each industry listed across the top represents the
consuming sector (‘j’) and down the table, each row represents the producing sectors (‘i’).

• Output/ transactions of goods and services are broken down by intermediate and final use.
Intermediate use + final use = Total output
 Introduction

• Agriculture (Sectors: 1 to 20) • Storage and Warehousing (Sector 114)

• Animal Husbandry (Sectors 21-24)
• Forestry and Logging (Sector 25)
• Fishing (Sector 26)
• Mining and Quarrying (Sectors 27 to 37)
• Manufacturing (Sectors 38 to105)
• Construction (Sector 106)
• Electricity (Sector 107)
• Water Supply (Sector 108)
• Railway Transport Service (Sector 109)
• Land Transport Services including via Pipelines
(Sector 110)
• Water Transport (Sector 111)
• Air Transport (Sector 112)
• Supporting and Auxiliary Transport Activities (Sector
113)
• Communication (Sector 115)
• Trade (Sector 116)
• Hotels and Restaurants (Sector 117)
• Banking (Sector 118)
• Insurance (Sector 119)
• Ownership of Dwellings (Sector 120)
• Education and Research (sector 121)
• Medical & Public Health (Sector 122)
• Other Services (Sector 123-129)
 Introduction

• The final uses have been distinguished under six categories

(i) Private Final Consumption Expenditure (PFCE), represents the consumption expenditure of
households and non-profit institutions.
(ii) Government Final Consumption Expenditure (GFCE), represents current consumption expenditure
of the government.
(iii) Gross Fixed Capital Formation (GFCF), "investment", defined as the acquisition of produced
assets (including purchases of second-hand assets), including the production of such assets by
producers for their own use, minus disposals. The relevant assets are intended for use in the
production of other goods and services for a period of more than a year.
(iv) Change in Stocks (CIS), commodity-wise CIS has been estimated separately for (a)
manufacturing sectors and (b) sectors other than manufacturing. The data on “value of stocks at
the beginning and end of the year by industries.
(v) Exports of goods and services (EXP), and
(vi) Imports of goods and services (IMP).
 Introduction

Percentage Distribution of various components in total output

 Summary of Matrix Operators in RStudio (1/2)

Operations
R is case sensitive so A and a denote distinct objects.
To create a vector x, x <__ c(x1,x2, ……..xp)
To create a matrix A, A <__ matrix(data, nrow=m, ncol=n, byrow=F)
To access an individual element in a matrix A, the (i, j)th, A[i, j]
To access an individual row in a matrix A, the ith, A[i,]
To access an individual column in a matrix A, the jth, A[,j]
To access a subset of rows in a matrix A, A[i1 : i2; ]
To access a subset of columns in a matrix A, A[;j1 : j2]
To access a sub-matrix of A, A[i1 : i2; j1 : j2]
Addition A+B, A+B
Subtraction A-B, A-B
Multiplication AB, A%*%B
Transpose AT, t(A)
Inversion A-1, solve(A)
 Summary of Matrix Operators in RStudio (1/2)

Operations
Determinant, det(A)
Trace of a matrix A, sum(diag(A))
To extract a diagonal of a matrix A as a vector, diag(A)
To find the dimensions of a matrix A, dim(A)
To join matrices A and B together side by side, cbind(A,B)
To stack A and B together on top of each other, rbind(A,B)
To change a dataframe into a matrix, data.matrix(dataframe)
To change some other object into a matrix, as.matrix(object)
To control the number of digits printed to 3 options(digits=3)

RStudio doesn’t run line that starts with #. # for comment.

Prompt command ‘>’. What happened when ‘+’ appears after ‘>’?

<- and = refers to equal sign. Left hand of <- is user defined variable/s.
 Functions used in IOT

Functions Description
options(scipen=999) Disable/remove scientific notation (e values)
as.matrix Converting the object into a matrix
is.na()<-0 Converting NA values to 0
as.numeric Converting the object into a numerical value
sum() Find the sum of the values
rownames() Define the row names
colnames() Define the column names
/ Divide
options() Controls the number of digits to print when printing numeric values.