Granberg, Alexander

Zaitseva, Ioulia

English

Research Papers in Economics

THE 40
TH CONGRESS OF THE EUROPEAN
REGIONAL SCIENCE ASSOCIATION
29 AUGUST – 1 SEPTEMBER, 2000, BARCELONA, SPAIN
Alexander Granberg, Council for the Study of Productive Forces, Moscow, Russia,
e-mail: granberg@glas.apc.org; Ioulia Zaitseva, State Committee of the Russian Fed-
eration on Statistics, Moscow, Russia, e-mail: julia_z@ru.ru
COMPARATIVE REGIONAL ANALYSIS ON THE BASE OF
THE SYSTEM OF AGGREGATED INPUT-OUTPUT TABLES
The last basic input-output table of Russia was constructed on the basis of SNA'93 by
the State Committee of Russian Federation on Statistics for 1995. The official regional
input-output tables in Russia were not constructed after 1987.
The methodology of construction and testing of regional input-output tables on the base
of the national IOT and regional accounts data is discussed in the paper.
Interregional analysis of the main indexes is carried out.2
1. Introduction
National Input-Output tables (NIOT) for Russia by Material Product System methodol-
ogy were compiled since 1966 until 1991. The first base NIOT by SNA was constructed
for 1995. Presently, National Input-Output tables are produced on an annual basis in
current prices with a 2-3 year lag from the reference year.
There is rich experience in compilation of the Regional Input-Output tables (RIOT) for
Russia but elaboration of these tables had been carried out in conditions of other eco-
nomic system and by MPS methodology. Input-Output tables were compiled by 12
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Output table for USSR). Information base was special survey of produc-
tion inputs, which were produced for construction of NIOT. Regional ta-
bles by 3 Siberian regions had same classification of products as national tables
and were carried out at purchasers’ prices only. RIOT by other regions was constructed
by brief classification.
Regional Input-Output tables by subject of Russian Federation are never produced.
However federal and regional institutes have strong requirement in RIOT for forecast-
ing and planning. Some regions try to elaborate Supply and Input-Output tables but
these attempts are not finished and unadequate.
In this paper is presented the first endeavour of the compilation and analysis of experi-
mental RIOT 1997 for 79 subjects of Russian Federation by SNA methodology at pro-
ducers’ prices.
2. Statistical base for RIOT
2.1. The National Input-Output Tables of 1997
A time series of Input-Output tables, constructed by SNA’93 methodology, is available
spanning for the 1991-1997 period.
Feature of Russian Input-Output system is the compiling of input-output table (product-
by-product) passed Use table. Supply table was constructed for 1995 only (Goskomstat
of Russia, 1996). However, the Russian Input-Output system includes Input-Output ta-
ble in both basic and purchasers’ prices, and whole complex of matrixes, used for tran-
sition from purchasers’ prices to basic prices.
National Input-Output table 1997 has “working level of aggregation” 93 x 120 products,
including 65 industrial products. Official NIOT 1997 for Russian Federation has 223
products, including 13 industrial goods. There are 11 categories of final demand in-
cluding import and export. Unfortunately, product classification, used in Russian Input-
Output tables, is not correspondence with Central Product Classification (CPC) (UN,
1993) and other international classifications.
The database for NIOT is special sampling survey of production inputs. Last survey was
carried out for 1995 and NIOT 1995-1997 are constructed on the base of this informa-
tion.
Another feature of NIOT that construction of NIOT is finished late than the national ac-
counts and the regional production accounts. Adjustments of the control totals, which
were made in NIOT, are not taken into consideration in regional accounts and partly in
national accounts. As result, there are differs between control total by NIOT and control
total by national accounts conditionality by adjustments, and between control total by
NIOT and the regional production accounts – adjustments and undistributed part of pro-
duction, taxes and final consumption. It is severe handicap for regionalizing of Input-
Output table.
That is why for compilation of RIOT we corrected data of the regional production ac-
counts on the amount of adjustments but sum of all RIOT is not equal NIOT on the
amount of undistributed part. In the future, we will try to divide undistributed part be-
tween region, then National Input-Output table will be formed the control totals for Re-
gional Input-Output tables.
2.2. Scheme of Regional Input-Output table
Experimental Regional Input-Output tables, presented in paper, are constructed for
1997. The methodology of regional accounts in Russia is continuing to improve year by
year. By this reason, we use for our estimations last NIOT (for 1997).
In national and regional accounts are used classification has 34 positions, however, in-
dustry is presented by only one position, although market and non-market services are
presented to a far greater extent. In our case on the final stage we aggregate RIOT on 10
products (simplified scheme of RIOT is shown in Table 1):
(1)  Industry,
(2)  Construction,
(3)  Agriculture and forestry,
(4)  Other activity of goods and services productions,4
(5)  Transport,
(6)  Communication services,
(7)  Trade, intermediation and restaurant services,
(8)  Housing, communal and households services,
(9)  Education, healthcare, culture, art,
(10) Science and scientific services,
(11) Administration, finances, credits, insurance, services of membership organization.
Table 1. Simplified scheme of Input-Output table for the region of Russia (product-by-
product, at producers’ prices)
2.2. Using of Regional Accounts
Presently, in Russia there are only the production account and some elements of the use
of income account on the regional level.
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The regional production account (Goskomstat of Russia, 1998). This account has com-
piled since 1994 and Goskomstat has published the official data of GRP by 79 subject
of Russian Federation. Gross regional product is defined as sum of gross value added by
industries plus net tax on the product. Gross value added is the difference between out-
put at basic prices and intermediate inputs.
Table 2. Simplified scheme of the production account for region of Russia (at current
prices)
Output at basic
prices
Intermediate
inputs
Value added
Industry
Construction
Agriculture and forestry
Other activity of goods and services
productions
Market services (20 positions)
Non-market services (10 positions)
Total
Taxes on products X X
Subsidies on products X X
Gross regional product X X
Methodology of estimation of this indexes on the national and regional levels is the
same. However, some elements of Russian GDP can’t be compiled on the regional level
or distributed between regions.
Total GRP of all Russian regions is differ from Russian GDR on the value added of:
·  non-market community services, provided by general government to the society as a
whole (national defence, governing);
·  other non-market community services, budgeted on the account of federal budget and
data is absent on the regional level;
·  financial intermediation services (particularly banks), which activity is not limited of
the regional border;
·  services of the foreign trade, in many cases information can be taken on the federal
level only.
Besides, GDP and GRP at market prices distinguish on the amount of the export taxes
and the import taxes, because their total amount is impossible to distribute between
separate regions (there are some specifics of their account). Total GRP composes ap-
proximately 90% of Russian GDP (Granberg etc., 1998).6
The use of income account. There are two elements of the use of income account, which
estimate on the regional level: final consumption of households (FCH) and final con-
sumption of general government and NPISHs (FCG).
The methodology of final regional consumption (FRC) calculation has some simplifica-
tions. It is related with incomplete available data.
The final consumption of households is taken into account in borders of region, without
separation on residents and non-residents of regional economy. Sum of FCH by regions
is not equal national FCH on the amount of humanitarian aid and direct purchasers on
foreign market by residents less direct purchasers in domestic market by non-residents.
On the regional level final consumption of households is divided between consumption
of goods and consumption of services.
The consumption of collective services is evaluated only by production method ac-
cording to kinds of services. The part of final consumption, connected with activity of
federal institutes, is not distributed between regions.
Total FRC composes approximately 70% of final consumption estimated for Russian as
a whole (Granberg etc., 1999).
3. Methodology of regionalizing Input-Output Table
3.1. Output and intermediate inputs
We used the top-down method (Eurostat, 1995) for regionalizing of Input-Output tables,
especially for estimation of the 1
st quadrant. “Working” variant of regional intermediate
consumption matrix is constructed by same classification as NIOT. But industrial pro-
duction is presented by only one position in the regional production account. Therefore,
on the first step “industrial” output was divided on 65 products. It was made on the base
of enterprise statistical reports and indirect statistical information. For estimation of
share of intermediate inputs in output by products was used average national share for
proper product. Value added by industrial products is the difference between output at
basic prices and intermediate inputs. Control totals by non-industrial products are taken
into the regional production account.
After estimation of control totals of output and intermediate inputs by all 120 products
for each region we compile intermediate consumption matrix for each region proceed
from the supposition, that structure of intermediate inputs by the production of each7
product is same for all regions and equal national structure. Finally we aggregate re-
ceived matrix on 11x11 scheme.
3.2. Final domestic demand
Control totals by final consumption of households and final consumption of general
government and NPISHs by regions are taken from the use of income accounts.
Structure of FCH of services by regions is estimated by annual statistical form and
structure of FCH of goods by regions conditionally is same the structure of FCH of
goods from NIOT.
Gross capital formation was estimated on the regional level by elements. Official statis-
tics is published “investment in fixed capital” (IFC) by regions of Russia, but this index
is not comparison with “gross fixed capital formation” (GFCF).
GFCF = IFC – STD + CL + IFA + IDB, (1)
STD – small inexpensive tools and devices,
CL- changes in livestock and trees,
IFA - improvements to existing fixed assets,
IDB - inputs on database.
Missing elements of gross fixed capital formation, changes in inventories and acquisi-
tion less disposals of valuables was estimated with using of direct and indirect informa-
tion. Unfortunately, in present time is too hard to divide regional gross capital formation
between products, it is one of the reasons why we finally aggregated RIOT on 11 x 11
classification.
3.3. Net export and non-competitive import
Unfortunately, in our RIOT we could not estimate export and import by products and
regions. At present time such information is either unavailable or unreliable. We evalu-
ate net export by products as difference between output and intermediate consumption
plus final domestic demand.
However we try to calculate non-competitive import in intermediate consumption by
industrial products. We estimate matrix of non-competitive import for every region by
the following methodology: if there is intermediate consumption of some product but
there is not production of this product then all amount of intermediate consumption is a
non-competitive import. In other cases, intermediate consumption is not defined as non-
competitive import regardless of production quantity. Of course, amount of non-8
competitive import depends from classification of products. But that is all what we can
do using available data.
4. Comparative analysis of aggregated RIOT
Construction of Regional Input-Output tables by explained above methodology is
showed extremely high distinguishes between regions – subjects of the Russian Federa-
tion.
The comparative characteristics by some regions of Russian Federation for 1997 is led
below:
Table 3.1. Intermediate inputs-output ratios (%)
 Products
 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Total
Chukchi autonomous district 56,4 2,5 3,6 1,2 14,9 2,4 10,2 6,2 0,1 1,8 0,6 100
Ingush Republic 54,0 2,0 11,0 1,2 12,7 1,8 11,3 4,4 0,1 0,9 0,6 100
Krasnodar kraj 52,9 1,8 17,9 0,9 9,5 1,4 11,6 2,3 0,1 1,0 0,6 100
Magadan oblast 57,7 2,2 4,1 1,3 15,2 1,8 11,1 3,8 0,1 2,1 0,6 100
Moscow city 55,6 2,4 4,5 2,0 10,7 3,1 13,4 3,7 0,2 3,3 1,2 100
Omsk oblast 68,7 1,0 8,4 0,7 10,0 0,9 7,5 1,6 0,1 0,6 0,4 100
Perm oblast 64,4 1,6 5,9 0,9 10,8 1,2 10,8 2,1 0,1 1,6 0,6 100
Republic of Altay 45,5 2,0 21,2 1,0 13,1 1,9 9,7 4,3 0,1 0,7 0,5 100
Republic of Bashkortostan 66,5 1,1 9,2 0,8 10,5 0,9 8,2 1,5 0,1 0,9 0,4 100
Samara oblast 68,6 1,5 4,5 1,0 9,0 1,1 10,1 2,2 0,1 1,4 0,6 100
Table 3.2. Non-competitive import (%)
Regions of Russia Share of Product structure of non-competitive import
non-competitive
import of in-
dustrial goods in
intermediate
consumption of
industrial goods
Total Energy
and fuel
Metal-
lurgy
Chemical Machine
building
and
metal-
working
Light Food Con-
struction
materials
Other
industrial
goods
Perm oblast 3,1 100 1,4 33,0 0,0 41,1 0,0 12,1 2,1 10,3
Krasnodar kraj 3,5 100 55,7 22,7 11,0 6,6 0,0 0,0 2,9 1,1
Samara oblast 3,7 100 43,7 25,9 0,0 5,5 14,2 0,0 6,9 3,9
Republic of Bashkortostan 4,0 100 78,1 0,0 0,0 14,7 0,0 1,3 0,0 5,8
Moscow city 4,7 100 57,5 7,2 0,0 0,0 0,0 0,0 27,6 7,7
…
Magadan oblast 46,1 100 42,3 19,9 11,6 12,6 1,0 4,4 3,2 5,0
Omsk oblast 50,0 100 96,0 1,0 0,3 0,7 0,0 0,6 0,3 1,0
Chukchi autonomous dis-
trict 59,8 100 32,4 7,6 11,8 26,1 2,7 5,2 8,9 5,4
Republic of Altay 71,6 100 45,0 5,9 11,6 12,6 0,6 10,6 4,6 9,2
Ingush Republic 75,6 100 37,4 9,2 8,9 24,3 0,5 8,5 6,0 5,19
Table 3.3. Structure of final demand (%)
Regions of Russia Final consump-
tion of house-
holds
Final consump-
tion of general
government and
NPISHs
Gross fixed
capital formation
Changes in in-
ventories and
acquisition less
disposals of
valuables
Net export Total
Chukchi autonomous dis-
trict
22,6 55,7 14,8 5,0 1,8 100
Ingush Republic 62,3 27,8 66,6 0,0 -56,7 100
Krasnodar kraj 66,9 18,7 24,2 3,2 -13,0 100
Magadan oblast 43,8 34,1 24,6 -0,9 -1,6 100
Moscow city 103,7 13,8 23,2 1,7 -42,4 100
Omsk oblast 66,0 18,8 17,3 3,5 -5,6 100
Perm oblast 54,5 15,7 22,2 3,4 4,1 100
Republic of Altay 79,6 37,0 11,1 9,0 -36,6 100
Republic of Bashkortostan 44,2 13,2 25,7 5,3 11,7 100
Samara oblast 63,9 14,8 20,1 3,8 -2,5 100
Table 3.4. Structure of intermediate inputs (%)
 Products
 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Chukchi autonomous district 51,8 37,1 75,9 28,5 23,4 28,0 39,8 157,7 43,8 15,4 79,7
Ingush Republic 37,3 45,3 42,0 10,8 33,5 25,2 24,9 81,6 24,0 10,5 66,0
Krasnodar kraj 64,5 42,1 58,1 20,5 30,1 20,4 33,3 70,2 34,8 44,4 32,5
Magadan oblast 60,7 18,7 101,8 36,6 44,9 29,2 36,9 47,7 38,2 44,2 54,9
Moscow city 63,1 45,7 13,9 48,6 48,1 28,8 30,6 56,1 52,9 56,0 34,6
Omsk oblast 75,6 50,9 56,0 34,5 33,7 22,7 30,8 56,9 39,1 45,0 35,9
Perm oblast 61,3 41,1 48,7 16,4 52,5 19,7 26,3 62,3 43,6 54,7 33,9
Republic of Altay 63,1 38,0 48,5 40,8 53,6 22,4 29,5 38,1 28,8 38,5 60,3
Republic of Bashkortostan 67,7 42,2 53,3 36,4 28,8 19,1 30,2 54,7 37,7 42,1 53,3
Samara oblast 66,7 48,7 69,8 31,8 29,3 20,8 36,2 80,8 40,6 27,0 38,0
Compiled Regional Input-Output tables are the informational base for regional and
interregional models of the short-time forecasting.10
References
Eurostat (1996), European System of Accounts, ESA 1995. Eurostat, Luxembourg.
Goskomstat of Russia (1996). Methodological principles on statistics, issues 1. Mos-
cow.
Goskomstat of Russia (1998). Methodological principles on statistics, issues 2. Mos-
cow.
Granberg Alexander, Irina Masakova and Ioulia Zaitseva (1998), Gross regional
product: indicator  of differentiation of the region’s social-economy development  (Rus-
sia in transition). Paper presented at European Regional Science Association (ERSA)
38th European Congress in Vienna, Austria, 28 August – 1 September 1998.
Granberg Alexander, Irina Masakova and Ioulia Zaitseva (1999), Differentiation of
regions of Russia on Gross regional product by expenditures. Paper presented at Euro-
pean Regional Science Association (ERSA) 39th European Congress in Dublin, Ireland,
23-27 August 1999.
United Nations, CEC, IMF, OECD and World Bank (1993), System of National Ac-
counts.

European System of Accounts, ESA

Irina Masakova and Ioulia Zaitseva

Methodological principles on statistics, issues 2.

COMPARATIVE REGIONAL ANALYSIS ON THE BASE OF THE SYSTEM OF AGGREGATED INPUT-OUTPUT TABLES

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COMPARATIVE REGIONAL ANALYSIS ON THE BASE OF THE SYSTEM OF AGGREGATED INPUT-OUTPUT TABLES

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