Input-Occupancy-Output Analysis and its Application in China

The input-output analysis developed by American economist Wassily Leontief has found wide applications all over the world. In current input-output tables, the term input means the consumption of various essential factors in economic activities. This may be seen in the entries in the columns of any commonly used input-output table, that is, the sum of raw entries taken column-wise. (14.1)<math display='block'> <mrow> <mstyle displaystyle='true'> <munderover> <mo>&#x2211;</mo> <mrow> <mi>i</mi><mo>=</mo><mn>1</mn> </mrow> <mi>n</mi> </munderover> <mrow> <msub> <mi>X</mi> <mrow> <mi>i</mi><mi>j</mi> </mrow> </msub> <mo>+</mo><msub> <mi>D</mi> <mi>j</mi> </msub> <mo>+</mo><msub> <mi>V</mi> <mi>j</mi> </msub> <mo>+</mo><msub> <mi>M</mi> <mi>j</mi> </msub> <mo>=</mo><msub> <mi>X</mi> <mi>j</mi> </msub> <mo>,</mo><mtext>&#x2003;</mtext><mi>j</mi><mo>=</mo><mn>1</mn><mo>,</mo><mn>2</mn><mo>&#x2026;</mo><mo>,</mo><mi>n</mi> </mrow> </mstyle> </mrow> </math> $$ \sum\limits_{i = 1}^n {{X_{ij}} + {D_j} + {V_j} + {M_j} = {X_j},\quad j = 1,2 \ldots ,n} $$ where $$\sum\limits_{i = 1}^n \; $$<m:math display="block"><m:mrow><m:mstyle displaystyle="true"><m:munderover><m:mo>&#x2211;</m:mo><m:mrow><m:mi>i</m:mi><m:mo>=</m:mo><m:mn>1</m:mn></m:mrow><m:mi>n</m:mi></m:munderover><m:mtext>&#x2009;</m:mtext></m:mstyle></m:mrow></m:math>X _ij is the sum of intermediate inputs in the production process (consumption of raw materials, semi-finished materials, auxiliary materials, fuel, electricity, etc.), D _j is the depreciation of fixed assets, V _j is the labour cost and M _j is the net property income (indirect taxes, interest and profits).