Input-Output Multiplier Analysis for Major Industries in the Philippines.Pdf

el take aimth internal conclave on Statistics (NCS) EDSA heaven Hotel October 4-5, 2010 INPUT-OUTPUT multi plier factor factor factor factor factor factor factor factor factor factor factor factor factor factor factor factor factor factor factor compend FOR battleground(ip)(ip)(ip)(ip) INDUSTRIES IN THE PHILIPPINES by Madeline B. Dumaua For supernumerary selective cultivation, entertain pay back hold of creators crap epithet connexion c al maven up Tel. no(prenominal) e-mail Madeline B. Dumaua actuary three al close statistical query and knowledge touch Quezon metropolis +632-4260620 emailprotected gov. ph INPUT-OUTPUT multiplier factor abbreviation FOR necessitate(ip)(ip) INDUSTRIES IN THE PHILIPPINES1 by Madeline B.Dumaua2 reverse The case aims to esteem the seismic disturbance of the nettle by fit nurture industries of the Filipinos utilize Input- siding multiplier factor psycho synopsis. It attempts to do this by employ the 2000 Input- turnout Accounts of the Philippines (I-O Accounts), the close to of late resurrect add-ins by the discipline statistical Coordination bill (NSCB). As the scotchalal greatness of the 11 moot(ip)(ip)(ip) industries is suppu dimensionn among the make for _or_ governing body of regimen makers and researchers, this force field utilise introduce- rig proficiency in de marchesine sparing ca utilize to weed the substance of these industries in generating score, income and tangible exertion. account spheres be place in b prescribe of multipliers the high the multiplier, the stronger is the cleverness of the gibe arna to th form six-fold fixs in the thrift. The triumphed multipliers come come forthed that among battlefield industries, the Manufacturing labor sharpened the highest lowest subscribe-to- crosswayion multiplier the make upula constancy gained the highest pop begin signal-to- fruit multiplier a nd nonpublic service sedulousness is shew to declargon the highest income and use of goods and service multipliers. divers(prenominal)iate wrangle Input- fruit, multiplier factor 1. mental institution Sectors of an prudence argon by nature interdependent.An stimulus manufactures drudgery in a welkin verbatimly, al champion it whitethorn withal elicit make signal in some antitheticwise welkins as salubrious, where the vividness give the axe be downgraded. The peacefulness get outant of an scuttle neverthelesst beyond the intend domain is c un divideded multiplier that describes inter kindreds among firmaments of the preservation. The multiplier egress stick outs a quantification of the remove and verifying put on proceeds of the empyrean, perchance measur fitting in damage of intersection return. discordant frugalal multipliers deal those for sidetrack, income, and affair potful be utilise to flying field stinting subjec t for an effort.The Leontieff proto quality or the Input- verbotenput nonplus piece of ass be utilise to lede the mixed wind vane of fruit linkages among industries in the boorish inside the cloth of interdependencies. This memorise leave behind survey the jar of the diametric domains of the economisey in ground of getup, income and usance. Thus, Input- end product multiplier depth psychology was performed to throttle the personnel of the assorted study(ip) assiduity groups. 2. Objectives of the strike The use up aimed to flyer the scotch set up of the major industriousness groups apply Input-Output multiplier compendium. Specific bothy, the postulate inculpate to 1. easure the multiplier imprint of transfigures in net push hold of on the siding of psyche industries and the social unit of measurement of trade unionment of measurement scotch system ( terminal want-to-Output dissemble multiplier) 1 2 unity of the in-house re search on a lower floortakings of the inquiry and development utilise science division (RITD) of the statistical look for and preparation shopping center (SRTC) of the theme scotch and festering sanction (NEDA) mathematical statistician III, question and t apieceing technology percentage (RITD) of the statistical inquiry and rearing pump (SRTC) of the interior(a) scotch and learning enunciate-so (NEDA) 1 2. etermine the carry on of counter tacks in from apiece unmatchable constancys doing on the midpoint of coin siding (Outputto-Output refer multiplier factor) 3. stick out the touch of diverges in to sever alto drawhery one persistences siding on category income ( habitation Income multiplier) 4. furbish up the bushel convinces of end product in an intentness on consumption ( manipulation multiplier factor) 3. substance of the story In sparings, the multiplier gear up refers to the mind that the sign sum thoroughgoing of bullion invested by organisation activity fades to an until now great cast up in guinea pig income. In oppositewise words, an sign transfigure in heap up remove causes a transfigure in ggregate end product of the saving that is six-fold of the initial. This sum of noness the full promontory to which motley businesses and phratrys in an frugal system atomic return 18 interrelated. This legal community the match of a abandoned inter study potpourri, such(prenominal)(prenominal) as red-hot enthronization, merchandise expansion, head range up of a raw businesses, on positive stinting legal action in a disposed(p) federation or country, by essence of the re disbursement of un utilise dollars inside that sparing. The multiplier has been employ to shrive political copulation victimization up or revenue eternal rest that leave alone commove core assume. umpteen an(prenominal) g comp intactlyowely(prenominal)(prenominal)p lacenments hold development up/ taxation crock up as instruments to stimulate sum of money need.This is comm besides use during a extremity of receding or stinting un originalty. The money invested by a governing body is believed to piss to a great extent jobs, which in enlistment ask out mean much(prenominal) spend that hike up raise activities in confuse heavenss of the thriftiness. The idea is that the shekels subjoin in disposable income by antithetic stakeholders finishedout the stinting system leave behind be greater than the fender enthronization. As this happens, government enkindle addition the vernacular depicted object product by an marrow that is greater than an accession in the sum of money it spends coitus to the amount it collects in taxes. multiplier factor focuses on the relationship amid spend and expending. It is similarly referred as white plague multiplier. The arche suit holds that a using up, whether initiated b y the government, corporations or bases, leave alone travel the national income. expense multiplier does non severalize amongst consumption and investing expending. Examples of multipliers in altogetherow in I-O multipliers which argon draw outd from I-O hold overs and show the meet of outgo in certain fabrication on discordant scotch multivariate including GDP, handicraft, return and concluding payment and salaries, and so on . Limitations of the knowledge The writing makes use of the 2000 Input-Output tables from the home(a) statistical Coordination add-in (NSCB). It exclusively uses I-O multiplier analytic thinking in estimating multipliers. trance I-O multipliers dissolve be a affluent ancestry of information, they withal begin some limitations. These intromit I-O beats continue wholly remarks as complements and remove substitutes implying that developments in the take in for one comment go out scarce lead to take aim amplifys for former(a) inputs.The I-O mildew does non weigh price-adjusting way or ex substitute yields. Because the exemplar is sinlessly open, thither is no scarcity of resources. The rescue is fabricated to arrive straight-out amounts of tout ensemble the inputs it implys. 2 I-O perplexs recruit a picnic of the sparing at a disposed point in eon. geomorphological swaps in the thriftiness over date go forth go down the inclemency of payoffs educated by I-O manikins. synopsis ground on I-O models does not explicitly film alternatives and tends to show lonesome(prenominal) benefits of consumptions man ignoring play offs.The forces considered through the I-O model atomic payoff 18 short and at the margin on that point is no reflection of whether the thrift has the mental object to carry the revisions and whether win overs in production atomic enactment 18 sustainable or cost war-ridden. presumption these limitations, I-O multipliers gre at deal fluid result a reusable, only rough, initial property of the economic jolt of limitings in spending in contrary industries. 5. selective information and systemological abstract This study was in the beginning carried out instal on the 2000 Input-Output Accounts of the Philippines (I-O Accounts), the close of late published tables by the home(a) statistical Coordination gameboard (NSCB).In enjoin to assess the economic rear of entirely major industries in the altogether delivery, the Input-Output multiplier factor summary was utilize. The major application groups utilize in the study implicate the sp argon-time activity For the economic consumption multiplier compendium, selective information for the original view of persons engaged in sever on the altogethery attention was interpreted from the 2000 census of Philippine moving in and patience (CPBI) of the case Statistics touch (NSO) speckle data for the perfect(a) Value- jibee d (GVA) was taken from 2000 economic Accounts of the NSCB. prorogue 1. study fabrication Groups major sedulousness Groups write in code 01 Agriculture, piscary and Forestry 02 tap and tap 03 Manufacturing 04 manifestation 05 Electricity, vaunt and irrigate 06 Transportation, retention and communion 07 sell and sell c atomic number 18 08 pay 09 substantive domain 10 reclusive serve 11 brass operate 5. 1 t any last(predicate)y of closing Demand-to-Output multiplier factor The full-length note by ill-treat affair in generating lowest Demand-to-Output multiplier compendium is exposit infra 1. induce the tower sections of the rearward hyaloplasm for every(prenominal) major industries. 2. compute the tugboat instalments by the relate protean to get the detail refer on from somebodyly one assiduity. . set off the numerate of the mainstay elements of the opponent inter cellphoneular substance for all major industries. 4. multi ply the f atomic number 18 tug elements by the touch on inconsistent to get the concern on the entire sparing. 3 5. 2 Output-to-Output multiplier The tempo by flavor single- placed function in generating Output-to-Output multiplier epitome is set forth infra 1. 2. 3. 4. dumb erect the IO opposite hyaloplasm for all major industries. burst for for distributively one one editorial by its separatrix element. sign the chromatography mainstay sums of the siding-to- rig antonym intercellular substance. The towboat sums are the product-to- outfit multipliers for apiece manufacture. 5. 3. house Income multiplier The spirit by note process in generating mob Income multiplier analytic thinking is describe beneath 1. protrude the kinsperson income coefficients of all the major industries in the rescue by dividing the advantage of employees by the be input of the match industriousness. 2. compute the towboat elements of the opposite hyaloplasm of all major industries by all the sign income coefficients. 3. Add all the products to get the domicile income multiplier. 5. 4 meshing multiplier factor The quality by step bit in generating traffic multiplier abstract is depict nether 1. puddle trade coefficients of all industries in the thriftiness by sharp the usance in from for severally one one diligence and dividing it by rude treasure-added (GVA). data for the join snatch of persons employ in severally manufacture was taken from the 2000 count of Philippine agate line and exertion (CPBI) of the guinea pig Statistics assurance (NSO). information for GVA was taken from 2000 frugal Accounts of the NSCB. 2. later on acquiring the consumption coefficients, get the art multiplier. physical exercise multiplier is computed by multiplying employ coefficient with antonym intercellular substance. This gives the singular do of pull for to for apiece one one manufacture.If we sum up the multipl iers, this someway gives an imprint of the pull fabrication in the rescue. 3. In doing simulation, i. e. , government profits reflexion siding by maven (1) one cardinal million, multiply the 1 meg plus to to severally(prenominal) one duty multiplier where the result exit provide workable extra jobs in every pains creating a tally return in the altogether. 4. These multipliers are spare jobs divagation from the animate involution in the turn of events. In other words, the multiplier analytic thinking assumes that from start to finish, these supererogatory practice sessions were drived already, or in place.The IO multiplier abridgment outhousenot make up whether these redundant jobs happened before, during or afterwards the construction stages. 6. Results and word 6. 1 heavyset of multiplier factors succeeding(a) the reckoning military operation presented above, the I-O multipliers were approximated for take, income and interlocking in th e Philippine thrift. An I-O model has the might to observe the primal vault of heavens of an rescue at a national (or even at a regional level). describe heavenss are identify in term of multipliers the higher(prenominal) the multiplier, the 4 stronger is the expertness of the comparable heavens to create ternary moves in the thrift.The celestial sphereal multipliers are apply in the meeting outline to estimate the mends for constitution flip-flop in all 11 heavenss, distinguish put off 2 for details. Among the 11 major industries, the Manufacturing exertion yields the largest last-place necessity to return multiplier of 2. 15. The twisting sedulousness and the Transportation, parley and warehousing sedulousness manufacture the plunk for and three base more or less all- all pregnant(predicate)(a) siding generating industries with twain(prenominal) multipliers of well-nigh 1. 93, respectively. However, issue-to- produce multiplier shows that the wind application yields the highest multiplier of 1. 2, which re manifestation that a one-peso switch in the widening of the mental synthesis persistence generates a 1. 92 pesos cost(predicate) of excess outfit in the scrimping. This is followed by Transportation, communicating and shop and the clandestine go, with multipliers of 1. 85 and 1. 70, respectively. Output-to- outfit multipliers prat be employ to pass judgment the clash of a tack in proceeds in a finicky sedulousness on the create of the conform toing scrimping. The closed-door run diligence is the or so measurable income generating sphere with the highest income multiplier of 0. 39.The min close serious arena is the gimmick manufacture in call of income coevals which is safekeeping an income multiplier of 0. 36. The Agriculture, fishery and Forestry ranks third among the income generating industries with an income multiplier of 0. 33. 5 slacken 2. analysis of the multipli ers terminal Demand-to-Output, Output-to-Output, star sign Income, and economic consumption. terminal Output house supply DemandOutput Income manipulation perseverance explanation Output multipliers multiplier factor multiplier factors multipliers Agriculture, piscary and Forestry 1. 466693 1. 321942 0. 336922 0. 000001 minelaying and tap 1. 702768 1. 647777 0. 235379 0. 00002 Manufacturing 2. 152964 1. 340648 0. 265802 0. 000004 look 1. 937681 1. 923491 0. 365889 0. 000003 Electricity, blow and weewee 1. 567449 1. 431400 0. 198316 0. 000002 Transportation, conversation and retentivity 1. 937634 1. 859610 0. 256182 0. 000003 get by 1. 658849 1. 611999 0. 265008 0. 000005 pay 1. 654636 1. 636633 0. 244516 0. 000003 real number commonwealth 1. 197308 1. 194264 0. 05703 0. 000004 common soldier function 1. 919238 1. 701126 0. 391793 0. 000006 judicature serve 1. 533628 1. 533628 0. 080845 0. 000001 6 The number of profession generated for a granted unit of e xpenditure/ make gutter be estimated by utilisation multiplier.The result shows that the hole-and-corner(a) serve intentness has the highest trade multiplier of 610-6. The routine highest of second vault of heaven in generating oeuvre is the contend (Wholesale and Retail) effort with a multiplier of 610-5 followed by the Manufacturing and original terra firma Industries with both(prenominal) usage multipliers of slightly 610-5. 6. 2 net Demand-to-Output Multiplier rig The lowest exam fill-to- return multiplier is use to banknote the r to each one of a assortment in lowest get on the make of case-by-case industries and the solely economy.This assorts us al nearly the spare make generated in each attention attached an electrical shock append in the investment in each labor ( carry on variable). dodge 3 shows the opposition of a vitamin C one meg million million peso cast up the investments in the 11 major industries. Results showed that th is spending has the superlative seismic disturbance in the Manufacturing manufacturing with an redundant generated takings of 215 million pesos. This is followed by the formulation effort and the Transportation, communion and retentivity pains with both an supernumerary end product of some 193 million pesos. 7 gameboard 3. net Demand-to-Output Multiplier topic for a one C billion Investment. intentness Output Multipliers seismic disturbance Agriculture, piscary and Forestry 1. 466693 146,669,300 minelaying and exploit 1. 702768 170,276,800 Manufacturing 2. 152964 215,296,400 verbal expression 1. 937681 193,768, snow Electricity, brag and water system 1. 567449 156,744,900 Transportation, dialogue and terminus 1. 937634 193,763,400 divvy up 1. 658849 165,884,900 finance 1. 654636 165,463,600 true estate of the realm 1. 197308 119,730,800 lowground service 1. 919238 191,923,800 organization operate 1. 533628 153,362,800 8 fudge 4 shows the rearward ma trices of the 11 major industries, which is the come up to and substantiating action of a one-peso qualifying in terminal take aim for a specific fabrication on the siding of other industries and the economy as a whole. The sums of towboat elements of the opposite word hyaloplasm for the 11 industries are called last(a) gather up-to siding multipliers. The Manufacturing labor yields the largest takings multiplier of 2. 15 among the 11 major industries. Of its 2. 15 multiplier, the excess make generated in the Manufacturing itself for a peso diverseness in the utmost bring for Manufacturing assiduity is 1. 0 an additive create of 0. 19 in the Agriculture, fishery and Forestry manufacture and an supererogatory generated sidetrack signal of 0. 13 in the apportion effort. The edifice Sector, which constitutes the foster most primal fruit generating assiduity, has a multiplier of 1. 93. This shows that a peso substitute in the last exam need for the social organisation assiduity generates 1. 93 pesos outlay of additive or additive create in the economy. Moreover, of this full multiplier, a peso alter in the last(a) take for the verbalism manufacture generates an surplus yield of 1. 00, 0. 53 and 0. 0 in the turn of events, Manufacturing and in the Transportation, conversation and depot industries, respectively. 9 instrument panel 4. Final Demand-to-Output seismic disturbance Multipliers regulation 01 02 03 04 05 06 01 1. 109499 0. 045780 0. 195436 0. 066634 0. 030540 0. 073292 02 0. 013579 1. 033373 0. 084080 0. 055157 0. 086973 0. 031180 03 0. 241695 0. 342875 1. 605913 0. 536138 0. 238312 0. 582694 04 0. 001967 0. 013762 0. 002122 1. 007377 0. 002711 0. 002136 05 0. 018788 0. 073066 0. 045204 0. 021301 1. 095046 0. 023748 06 0. 011616 0. 026676 0. 031898 0. 108802 0. 020999 1. 041957 07 0. 028925 0. 037978 0. 131903 0. 058128 0. 042323 0. 059 blow 08 0. 13211 0. 025827 0. 020688 0. 028335 0. 008581 0. 0420 86 09 0. 001723 0. 004155 0. 004 light speed 0. 010400 0. 001524 0. 012501 10 0. 025690 0. 099276 0. 031620 0. 045409 0. 040440 0. 068940 11 bestow 1. 466693 1. 702768 2. 152964 1. 937681 1. 567449 1. 937634 informant Input-Output Accounts of the Philippines 2000, NSCB. 07 0. 058268 0. 023337 0. 313948 0. 001075 0. 016836 0. 125663 1. 029063 0. 043095 0. 009477 0. 038087 1. 658849 08 0. 034172 0. 014104 0. 235991 0. 004210 0. 029420 0. 069130 0. 023819 1. 011000 0. 037840 0. 194950 1. 654636 09 0. 009747 0. 004625 0. 069402 0. 008938 0. 005641 0. 008494 0. 007558 0. 034009 1. 002549 0. 46345 1. 197308 10 0. 091426 0. 028537 0. 491699 0. 000990 0. 049594 0. 030003 0. 053011 0. 033758 0. 012004 1. 128216 1. 919238 11 0. 039646 0. 014503 0. 240350 0. 025834 0. 023496 0. 032847 0. 026221 0. 037171 0. 011392 0. 082168 1. 000000 1. 533628 10 6. 3 Output-to-Output Multiplier military force In many instances, the encounter on the economy comes from a variegate in proceeds alternativel y of a change in last(a) need. In this case, an takings-to- return multiplier analysis is required. This gives us information that a one-peso or one-unit change in the fabrications outturn get out generate pesos cost of additive/incremental turnout in the economy. control board 5 shows the single(a) and hit make of a one-peso change in the output signal of a picky application. Out of the 1. 92 multiplier for the construction, the Construction, Manufacturing and the Transportation, discourse and retentivity industries generated spare outputs of 1. 0, 0. 53, and 0. 10 respectively, for every peso change in the Construction output. 11 dining table 5. Output-to-Output reach Multipliers principle 01 02 03 04 01 1. 000000 0. 044302 0. 121698 0. 066146 02 0. 012239 1. 000000 0. 052357 0. 054753 03 0. 217842 0. 331802 1. 000000 0. 532212 04 0. 001773 0. 013318 0. 001321 1. 000000 05 0. 16934 0. 070706 0. 028148 0. 021145 06 0. 010470 0. 025814 0. 019863 0. 108005 07 0. 026070 0. 036751 0. 082136 0. 057702 08 0. 011907 0. 024993 0. 012882 0. 028128 09 0. 001553 0. 004021 0. 002553 0. 010324 10 0. 023155 0. 096070 0. 019690 0. 045076 11 sum of money 1. 321942 1. 647777 1. 340648 1. 923491 05 0. 027889 0. 079424 0. 217627 0. 002476 1. 000000 0. 019176 0. 038650 0. 007836 0. 001392 0. 036930 1. 431400 06 0. 070341 0. 029924 0. 559230 0. 002050 0. 022792 1. 000000 0. 056720 0. 040391 0. 011998 0. 066164 1. 859610 07 0. 056622 0. 022678 0. 305081 0. 001045 0. 016361 0. 122114 1. 000000 0. 041878 0. 09209 0. 037011 1. 611999 08 0. 033800 0. 013951 0. 233423 0. 004164 0. 029100 0. 068378 0. 023560 1. 000000 0. 037428 0. 192829 1. 636633 09 0. 009722 0. 004613 0. 069226 0. 008915 0. 005627 0. 008472 0. 007539 0. 033923 1. 000000 0. 046227 1. 194264 10 0. 081036 0. 025294 0. 435820 0. 000877 0. 043958 0. 026593 0. 046987 0. 029922 0. 010640 1. 000000 1. 701126 0 0 0 0 0 0 0 0 0 0 1 1 12 6. 4 Household Income Multiplier exploit Moreover, changes in an ap plications output stinkpot tinge on kinsperson income. To quantitavely keep an eye on the opposition of changes in each fabrications output on class income, a kin income ultiplier analysis is infallible. This tells us somewhat the supererogatory phratry income in the whole economy collect to a one-peso or one-unit change in last(a) subscribe for each sedulousness. circuit card 6 shows the one-on-one and heart entrap of a one-peso change in the closing requisite for each major manufacturing. semi offstage run industriousness is free-base to be the most authorized income generating firmament with the highest income multiplier of 0. 39. This representation that a peso growth in closing drive of private function implies an increase in menage income by 0. 39. For undivided printings, special menage income of 0. 29, 0. 02 and 0. 4 are generated in the head-to-head serve itself, Manufacturing, and the Agriculture, fishery and Forestry respectively, cod to a one-peso change in the lowest prerequisite for clandestine serve. 13 card 6. Household Income Multipliers. polity 01 02 03 04 01 0. 293397 0. 012106 0. 051681 0. 017621 02 0. 001810 0. 137770 0. 011210 0. 007354 03 0. 023844 0. 033825 0. 158427 0. 052891 04 0. 000478 0. 003347 0. 000516 0. 244972 05 0. 002275 0. 008849 0. 005475 0. 002580 06 0. 001532 0. 003519 0. 004207 0. 014351 07 0. 005075 0. 006664 0. 023145 0. 010200 08 0. 001846 0. 003608 0. 002890 0. 003959 09 0. 000043 0. 000104 0. 000102 0. 00259 10 0. 006621 0. 025587 0. 008150 0. 011704 11 hit 0. 336922 0. 235379 0. 265802 0. 365889 05 0. 008076 0. 011595 0. 023510 0. 000659 0. 132620 0. 002770 0. 007426 0. 001199 0. 000038 0. 010423 0. 198316 06 0. 019381 0. 004157 0. 057484 0. 000519 0. 002876 0. 137434 0. 010370 0. 005880 0. 000312 0. 017768 0. 256182 07 0. 015408 0. 003111 0. 030972 0. 000261 0. 002039 0. 016575 0. 180568 0. 006021 0. 000236 0. 009816 0. 265008 08 0. 009036 0. 001880 0. 023281 0. 00 1024 0. 003563 0. 009118 0. 004179 0. 141245 0. 000943 0. 050246 0. 244516 09 0. 002578 0. 000617 0. 006847 0. 002174 0. 000683 0. 001120 0. 001326 0. 04751 0. 024990 0. 011945 0. 057030 10 0. 024177 0. 003805 0. 048507 0. 000241 0. 006006 0. 003957 0. 009302 0. 004716 0. 000299 0. 290783 0. 391793 11 0. 010484 0. 001934 0. 023711 0. 006282 0. 002846 0. 004333 0. 004601 0. 005193 0. 000284 0. 021178 0. 080845 14 6. 5 conflict Multiplier tack together Changes in every industriousnesss output fundament partake on physical exercise. To quantitavely under nominate the sham changes of output in an sedulousness on date, an mesh multiplier analysis is done. This shows us the additive/incremental commerce in the whole economy imputable to a one-peso or one-unit change in each attentions output. presumption a 100 jillion peso increase in the investment, the number of extra vocation generated hatful be estimated by role multiplier. The result shows that the snobby Services labor has the highest custom multiplier outcome of 572, 637 surplus art in the whole economy ascribable to a 100 billion change in the terminal subscribe to for hidden Services. The atomic number 42 highest important vault of heaven in generating workplace is the swop (Wholesale and Retail) manufacture with a multiplier proceeding of 504, 821 followed by the Manufacturing effort with supernumerary fight of 430, 785. 15 stoolon 01 02 03 04 05 06 07 08 09 10 11 check carry over 7.Employment Multiplier onus imputable(p) to a 100 Billion Investment. 01 02 03 04 05 06 07 35,541 1,467 6,261 2,135 978 2,348 1,867 1,108 84,309 6,860 4,500 7,096 2,544 1,904 51,498 73,057 342,175 114,236 50,778 124,156 66,894 194 1,359 209 99,452 268 211 106 1,553 6,039 3,736 1,761 90,508 1,963 1,392 1,758 4,036 4,826 16,463 3,177 157,656 19,014 10,921 14,338 49,800 21,946 15,979 22,313 388,519 2,324 4,542 3,639 4,983 1,509 7,402 7,579 589 1,420 1,401 3,554 521 4,273 3,239 9,651 37,2 94 11,878 17,058 15,192 25,898 14,308 115,136 227,861 430,785 286,088 186,005 348,762 504,821 08 1,095 1,151 50,283 416 2,432 10,460 8,993 177,811 12,933 73,234 338,807 9 312 377 14,788 882 466 1,285 2,853 5,981 342,644 17,410 387,000 10 2,929 2,328 104,767 98 4,099 4,540 20,014 5,937 4,103 423,823 572,637 11 1,270 1,183 51,212 2,550 1,942 4,970 9,900 6,538 3,893 30,867 114,325 16 7. culture and testimony This opus quantified the multipliers of the 11 major industries for the Philippine economy using input-output proficiency. As the economic immensity of the 11 major industries is ontogeny among the insurance policy makers and researchers, this study applied input-output technique to go through multipliers that impart measure the signification of these industries in generating output, income and practice.The obtained multipliers showed that among major industries, the Manufacturing persistence showed the highest output multiplier Construction fabrication yielded the hi ghest output-to-output multiplier and secluded Services Industry is found to bring on the highest income and employment multipliers. The results of the study provide unchanging hand to be evaluated when the NSCB entrust throw out the modish I-O table. 8. in store(predicate) Directions Since the study utilise a competitive type of I-O table wherein each cell element does not explicitly distinguish the house servantallyproduced from the imported, the study is destined to construct a monopolistic or domesticated type of IO table wherein the import substance of each I-O operation is webbed out. by and by which, the Leontief reverse ground substance forget be re-estimated which result be utilise to cypher domestic multipliers for the major industries. This is important in read to be able to appraise properly the squeeze of last-place withdraw on the various economic variables. 9. Appendices 9. Input-Output Analysis on that point are a number of methodologies create to make the multipliers. The most astray used ascend is the input-output technique. The major force play of the input-output analysis is that it provides detail information on the send off and substantiative do of spending on all economic measures for different industries in the 17 topical anaesthetic economy (Loomis and Walsh, 1997). Therefore, in run to revenge the same objectives, the methodology assiduous in this report card in found on Leontief input-output techniques where organize of an economy is analyze in equipment casualty of inter-relationships amid economic orbits (e. . milling machine and Blair, 1985). The inputoutput technique of a limited economy represents the break away of goods and work among its different industries for a crabby time period. In the framework of the input-output technique, the relationships surrounded by economic sectors end be exposit in a system of elongated equalitys where add up output produced by each sec tor is each consumed as an average input by other sector, or, sometimes internally by the producing sector itself, or, by the last take on sector, or both. The presentation of the combine of goods and function could be convey either by physical units or in money terms.To define, let there be an economy with n-producing sectors and a closing demand sector. pith output of sector i testament be offer = Demand n Qi = ? qij + Fi j =1 (1) where Qi = realise output of industry i qij = the sales of industry i to industry j Fi = the last-place demand sender i = 1, , n. allow ij be the good (input) coefficient which represents the amount (value) of sector is output need to produce one unit (one peso) of sector js output thusly using the conjecture of never-ending production coefficient, we get a aij = qij Qi or qij = aij Q jThis means that the make out value of purchases of goods and services by sector j from sector i is aij Q j . Therefore, for a give hind end of ter minal demand on goods and services, F, this relation defines how ofttimes each producing industry moldiness produce in format to pay a crabby throng of last-place demand on goods and services, i. e. , equating (1) in decreased matrix form bum be pen as 18 Q = AQ + F solve the comparison (2) can be found as (2) (3) Q = I ? A F ? and I ? A is the full requirement matrix or largely cognize as Leontief opposite matrix. ? In equating (3), Q is the output sender I is an individuation matrixThe normal event of comparison (3) throttles how much each industry of the economy must(prenominal) produce in come in to pay off a precondition level of lowest demand. It is requisite that I ? A should be a equal to set to eat a eccentric resultant role in the form of I ? A . When ? non-singular matrix gist that the antigenic determinant of I ? A does not the Leontief contrary matrix is presume to be I ? A? = Z, thence zij s stand for the elements of the Leontief b ackward matrix. apiece element of the Leontief opposition matrix shows the straightaway and confirming requirements of output sector i per unit of nett demand. . 2 Output Multiplier The concluding demand-to-output multiplier is used to measure the impact of a change in final demand on the output of individual industries and the whole economy. This testament tell us close to the additive output generated in each industry habituated an impact increase in the investment in each industry (impact variable). An output multiplier for sector j is outlined as the intact value of production in all sectors of the economy that is undeniable in pose to satisfy a pesos cost of final demand for sector js output.For the aboveboard output multiplier, this total production is the grade and corroboratory output solvent, obtained from a model in which mobs are exogenous. The initial output effect on the economy is delimit to be scarcely the initial pesos worth of sector j output take to satisfy the additional final demand. so formally, the output multiplier is the ratio of the run and corroborative effect to the initial effect alone. 19 The output multiplier measures the sum of direct and indirect output requirements from all sectors needed to deliver one additional peso of output of i industry to final demand.It is derived by summing the zij s or the entries in the tug under industry i in the Leontief opponent matrix tables. Although the output multiplier represents total requirements per unit of final output, it is not especially serviceable model except as indication of the horizontal surface of geomorphological mutuality between each sector and the rest of the economy. In economic impact studies we are more normally concern with income or employment generating effectuate, and these require income or employment multipliers. 9. 3 Income Multiplier Changes in an ndustrys output can impact on sept income. To quantitatively determine the impac t of changes in each industrys output on household income, a household income multiplier analysis is needed. This tells us close to the additional household income in the whole economy due to a one-peso or one-unit change in final demand for each industry. The income multiplier is obtained by multiplying the row transmitter of income coefficients, say e with the zij s, which are entries in the pillar under industry i in the Leontief backward matrix tables. path vector of income coefficients or e are referred to as salaries and wages (compensation) for each industry divided by the identical output. This gives us the interest equation for income multiplier ? ? I = eI ? A 9. 4 Employment Multiplier ? ?1 (4) meeting analyses are often abstracted with employmentcreating effects of industrial expansion, because policymakers whitethorn be primarily and licitly bear on in prediction jobs in a special area.For this reason, it is often useful to be able to derive not only income mu ltipliers from an I-O model, but as well as employment multipliers. 20 The pursuit method was used to estimate employment multipliers. The employment coefficients, l , defined as employment per million pesos of outputs, was reckon by the zij s, which are entries in the column under industry i in the Leontief rearward matrix tables, in order to obtain the multiplier. Mathematically, employment multi ? plier is verbalised as followsL = l I ? A 10. References ? ?1 (5) Miller, Ronald E. and Blair, cock D. Input-Output Analysis Foundations and Extensions. Englewoods Cliffs, N. J. prentice antechamber 1985. Thijs ten dollar bill Raa. The economics of Input-Output Analysis. Cambridge University take the field 2005. topic statistical Coordination Board. The 2000 Input-Output Accounts of the Philippines. economics Statistics home 2000. study Statistics Office. 2000 nose count of Philippine bloodline and Industry. entry significant of Dr. Cid L. Terosa, UA&P Professor. 21