Changes in New Zealand's Production Structure: An Input Output Analysis

Claus, Iris Working Paper Changes in New Zealand's Production Structure: An Input Output Analysis New Zealand Treasury Working Paper, No. 03/01 Provided in Cooperation with: The Treasury, New Zealand Government Suggested Citation: Claus, Iris (2003) : Changes in New Zealand's Production Structure: An Input Output Analysis, New Zealand Treasury Working Paper, No. 03/01, New Zealand Government, The Treasury, Wellington This Version is available at: https://hdl.handle.net/10419/205506 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Changes in New Zealand’s Production Structure: An Input Output Analysis Iris Claus N EW Z EALAND T REASURY W ORKING P APER 03/01 M ARCH 2003 484227 NZ TREASURY WORKING PAPER 03/01 Changes in New Zealand’s production structure: an input output analysis MONTH / YEAR March 2003 AUTHOR Iris Claus The Treasury 1 The Terrace PO Box 3724 Wellington NEW ZEALAND Email Telephone Fax [email protected] 64-4-471 5221 64-4-499 0992 ACKNOWLEDGEMENTS Special thanks are due to Barry Voice at Statistics New Zealand. This paper has also benefited from comments by Bob Buckle, John Creedy, Brian Easton, Dean Hyslop, Ralph Lattimore, Gant Scobie, Adolf Stroombergen and participants at a Treasury seminar. I would also like to thank Kathy Li for comments and checking the results and Jenny Fenwick for her assistance with the graphs. NZ TREASURY New Zealand Treasury PO Box 3724 Wellington 6008 NEW ZEALAND Email Telephone Website [email protected] 64-4-472 2733 www.treasury.govt.nz DISCLAIMER The views expressed in this Working Paper are those of the author and do not necessarily reflect the views of the New Zealand Treasury. The paper is presented not as policy, but with a view to inform and stimulate wider debate. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis i Abstract This paper investigates changes in the production structure of the New Zealand economy using input output data. The analysis is undertaken at the 25-industry level using inter industry transactions for 1971-72, 1977-78, 1981-82, 1986-87, 1990-91 and 1994-95. Changes in the composition of gross output and value added are examined. Backward and forward linkages, indices of industry interconnectedness, a value added production multiplier, a cumulated primary input coefficient for compensation of employees and a measure of import content of final demand output are calculated, taking into account both direct and indirect transactions. The results suggest that some industries have been subject to large structural change and that a shift in New Zealand’s pattern of industrial activity has occurred. These changes will have affected the transmission and propagation of shocks in the economy. JEL CLASSIFICATION C67 (input output models) L16 (macroeconomic industrial structure) KEYWORDS Input output models; industry importance; production structure; inter industry dependencies WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis ii Table of Contents Abstract.................................................................................................................................i Table of Contents.................................................................................................................ii List of Tables........................................................................................................................ii List of Figures ......................................................................................................................ii 1 Introduction.................................................................................................................1 2 Input output tables ......................................................................................................2 3 Composition of gross output and value added ...........................................................5 4 Inter industry linkages...............................................................................................13 4.1 Backward and forward linkages................................................................................... 13 4.2 Industry interconnectedness ........................................................................................ 20 4.3 Value added production multiplier................................................................................ 29 4.4 Cumulated primary input coefficient for compensation of employees ......................... 32 4.5 Import content of exports, gross fixed capital formation and consumption.................. 34 5 Summary and conclusions........................................................................................37 Appendix ............................................................................................................................40 List of Tables Table 1: Inter industry transactions 1986-87 (dollar millions) ..................................................... 4 List of Figures Figure 1: Composition of gross output (in percent) ....................................................................... 6 Figure 2: Direct exports as a percent of gross output ................................................................... 7 Figure 3: Change in stocks as a percent of gross output.............................................................. 8 Figure 4: Composition of value added........................................................................................... 9 Figure 5: Industry composition of value added............................................................................ 10 Figure 6: Ranking of backward linkages (final demand weighted).............................................. 15 Figure 7: Ranking of forward linkages (final demand weighted) ................................................. 16 Figure 8: Ranking of backward linkages (export weighted) ........................................................ 17 Figure 9: Ranking of forward linkages (export weighted)............................................................ 18 Figure 10: Ranking of backward concentration index ................................................................... 22 Figure 11: Ranking of forward concentration index....................................................................... 23 Figure 12: Ranking of row entropy (final demand weighted)......................................................... 25 Figure 13: Ranking of column entropy (final demand weighted)................................................... 26 Figure 14: Ranking of row entropy for total sales flows................................................................. 28 Figure 15: Ranking of value added production multiplier (final demand weighted) ...................... 30 Figure 16: Ranking of value added production multiplier (export weighted) ................................. 31 Figure 17: Cumulated primary input coefficients of industries for compensation of employees.................................................................................................................... 33 Figure 18: Cumulated primary input coefficients for exports......................................................... 35 Figure 19: Cumulated primary input coefficients for gross fixed capital formation........................ 36 Figure 20: Cumulated primary input coefficients for consumption ................................................ 36 WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis iii Figure A1: Backward linkages (final demand weighted) ............................................................... 40 Figure A2: Forward linkages (final demand weighted) .................................................................. 41 Figure A3: Backward linkages (export weighted) .......................................................................... 42 Figure A4: Forward linkages (export weighted)............................................................................. 43 Figure A5: Backward concentration index..................................................................................... 44 Figure A6: Forward concentration index........................................................................................ 45 Figure A7: Row entropy (final demand weighted) ......................................................................... 46 Figure A8: Column entropy (final demand weighted) .................................................................... 47 Figure A9: Row entropy for total sales flows ................................................................................. 48 Figure A10: Value added production multiplier (final demand weighted)........................................ 49 Figure A11: Value added production multiplier (export weighted)................................................... 50 WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 1 Changes in New Zealand’s Production Structure: An Input Output Analysis “In the early 1980s government policy changed abruptly (in New Zealand) from one based on protection, regulation, and industrial assistance to radical deregulation of entry and operating conditions in industry and trade liberalization.” (Bollard 1991) 1 Introduction The purpose of this paper is to examine how New Zealand’s production structure has changed using input output analysis. Input output data contain detailed information about the process of production, the use of goods and services (products) and the income generated in that production (United Nations 1993). They can be used to assess the composition of industries’ gross output and value added, the degree of specialisation of industries and the contribution of primary inputs in the production of the economy. The economic transformation of New Zealand, beginning in 1984, is notable for its comprehensiveness, rapid pace and the level of intervention from which it started. More specifically, the reforms centred around (i) the liberalisation of domestic markets and trade, (ii) the reduction of the size and scope of the state, (ii) monetary policy, driven by an overriding goal of price stability, (iv) labour market deregulation and de-unionisation of the workforce, and (v) fiscal restraint, through broadening the taxation base and cutting state spending and social support (Kelsey 1995). Understanding changes in the production structure is important as they affect the transmission and propagation of shocks in the economy. For example, an increase in the linkages of the finance, insurance etc. industry with other industries and sectors means that the effects of a shock in this industry will be magnified through the rest of the economy. Historical input output data are available in New Zealand on a comparable basis for 197172, 1976-77, 1981-82, 1986-87, 1991-92 and 1994-95. A comparison of New Zealand’s production structure in these years allows structural change in the economy to be examined. The input output methodology adopts a technological definition of production structure. This definition refers to “the input coefficients of an input output model derived from Leontief-type fixed-proportion production functions” (Soofi 1992). WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 2 The remainder of the paper proceeds as follows. Section 2 provides a brief description of input output tables and data available for New Zealand. The composition of gross output and value added are discussed in section 3, while section 4 investigates changes in inter industry linkages. Six measures of inter industry linkages are used: (i) backward and forward linkages, (ii) indices of industry interconnectedness, (iii) a value added production multiplier, (v) a cumulated primary input coefficient for compensation of employees and (vi) a measure of import content of final demand output. Section 6 summarises and concludes. 2 Input output tables 1 Inter industry tables provide a summary of the industrial structure of an economy for a given year. They contain information on the values of flows of goods and services between industries and sectors of the economy. Input output data are available in New Zealand for 1971-72, 1976-77, 1981-82, 1986-87, 1991-92 and 1994-95 on a System of National Accounts 68 (SNA68) basis. They can be compared at the 25-industry level of aggregation.2 The data are comparable although two differences are worth noting. First, the 1991-92 and 1994-95 tables were obtained through input output balancing while the other four data sets were compiled from full inter industry studies. Second, data are only available rounded to the closest million for 197172 and 1976-77. This introduces a potential bias in 1971-72 and 1976-77, as transactions of less than $0.5 million are not recorded.3 Input output data are also available for 1995-96, compiled on a System of National Accounts 93 (SNA93) basis and using a new commodity and industry classification. The change in methodology means that the 1995-96 table cannot be readily compared to earlier data -- only some industries are comparable over time. Because only some industries are comparable and because New Zealand’s production structure is not expected to have changed substantially between 1994-95 and 1995-96, at least not at the given level of aggregation, the 1995-96 data are not incorporated in the analysis.4 All commodity and industry flows in the input output tables are recorded in New Zealand dollars at basic prices.5 The basic price of a good or service is the amount receivable by the producer minus any tax payable and plus any subsidy receivable. The producer price is the amount receivable by the producer minus any deductible goods and services tax (GST) invoiced to the purchaser. The purchaser’s price is the amount paid by the purchaser, excluding any deductible GST in order to take delivery of a unit of a good or service. In the case of goods, the purchaser’s price includes any trade margins and transport charges paid by the purchaser. Both basic and producer prices exclude transport charges invoiced separately by the producer. 1 On input output tables see (United Nations 1993). 2 A high level of aggregation helps ensure a consistent definition of industries across time. 3 Inter industry transactions obtained through input output balancing are available for 1992-93. However, they are not considered in this analysis because data are only available rounded to the closest million. 4 The 1995-96 tables were investigated in (Claus 2002). 5 The results reported in sections 3 and 4 do not seem to be affected by inflation, i.e. high and rising inflation over much of the 1970s and 1980s and low and stable inflation over the 1990s. This is probably because of the high level of aggregation of the industries and the generalised inflation pressures throughout the economy. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 3 The focus of input output analysis tends to be on inter industry transactions or the industry by industry flow matrix. Table 1 provides an example of such a matrix.6 The rows of the inter industry transactions table describe the distribution of an industry’s output throughout the economy, while the columns describe the composition of inputs required by a particular industry to produce its output. Rows 1 to 25 record how much each industry sells to other industries (columns 1 to 25) and final demand output (columns 27 to 33), where final demand consists of household consumption, private non-profit final consumption, central and local government final consumption, exports, increase in stocks and gross fixed capital formation. Column 26, labelled “total industry”, is the sum of intermediate products supplied by a particular industry.7 The column labelled “total economy” (column 35) shows the total sales of intermediate and final demand products. Columns 1 to 25 show how much each industry purchases from other industries (rows 1 to 25) and other inputs to production (rows 26 to 35). Compensation of employees (row 26), operating surplus (row 27), non-commodity indirect taxes (row 29), non-commodity subsidies (row 31) and consumption of fixed capital (row 32) add up to total value added at basic prices (row 39).8 Entries along the principal diagonal (row 1, column 1; row 2, column 2; … row 25, column 25) of the intermediate input flow matrix (grey shaded area) show the amount of intra industry trade. Table 1 also shows the link between total use in basic prices (row 36) and purchaser’s prices (row 38). From Table 1 gross domestic product (GDP) at market prices can be calculated. The sum of total use in purchaser’s prices of final demand ($M 69,545) less total economy imports ($M 15,279) is equal to GDP ($M 54,266). Alternatively, GDP can be calculated as total industry value added in basic prices ($M 49,347) plus total economy taxes on products ($M 4,926) minus total economy commodity subsidies ($M 6). The inter industry transactions table shows the composition of gross output and value added by industry. Moreover, the table can be used to construct input output coefficients to assess inter industry linkages that take into account direct and indirect transactions. The basic input output identity can be expressed as follows f Axx += (1) where [] / N1 x,,xx K= is the vector of gross output (column 35 in Table 1), N denotes the number of industries, i.e. 25, [] / N1 f,,ff K= is the vector of final demand (column 34 in Table 1) and ]a[A ij = is the matrix of technical coefficients.9 Technical or input coefficients record the inputs directly required from one industry in order to produce one dollar’s worth of output of another industry. They are calculated as follows 6 For more details and an excellent introduction to inter industry transactions and input output analysis see (Dixon 1996). 7 The total value of intermediate output is equal to the total value of intermediate inputs; that is, aggregate intermediate supply is equal to aggregate intermediate demand. 8 Non-commodity indirect taxes and non-commodity subsidies are those which cannot be identified with individual commodities. 9 Subscript i refers to the industry in the ith row and j to the industry in the jth column. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 10 Figure 5: Industry composition of value added Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textile, apparel and leather Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 71-2 76-7 81-2 86-7 90-1 94-5 Consumption of fixed capital Non-commodity subsidies Non-commodity indirect taxes Operating surplus Compensation of employees WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 11 Figure 5: Industry composition of value added (cont.) Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Consumption of fixed capital as a proportion of value added declined between 1971-72 and 1981-82 from 8.9 percent to 7.1 percent. Since then it has been rising to reach over 10 percent in 1994-95. The increase in consumption of fixed capital is probably the result of the strong investment that followed the restructuring and large-scale obsolescence of capital following the reforms. A change in the mix of investment goods toward a higher proportion of components with shorter service lives may also have been contributing to the higher share. -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 71-2 76-7 81-2 86-7 90-1 94-5 Consumption of fixed capital Non-commodity subsidies Non-commodity indirect taxes Operating surplus Compensation of employees WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 12 Figure 5: Industry composition of value added (cont.) Central government services Local government services Private non-profit services Household domestic services The composition of value added at the industry level is plotted in Figure 5. It shows that the share of compensation of employees fell in 1986-87, 1990-91 and 1994-95 for fishing and hunting, forestry and logging, food, beverages and tobacco, chemicals, petrol, rubber etc., transport and storage, and communication, and in 1990-91 and 1994-95 for mining and quarrying, and paper, products and printing. The sharp decline in compensation of employees for forestry and logging, communication and transport and storage between 1981-82 and 1986-87 was largely the result of the layoffs in these industries following privatisation. For fishing and hunting, forestry and logging, and communication the decline in the share of compensation of employees was matched by an increase in the share of operating surplus. Changes in the composition of value added for fishing and hunting are partly the result of the introduction of Individual Transferable Quotas (ITQ) for New Zealand fisheries in 1986. The share of consumption of fixed capital has generally been increasing in all industries, apart for fishing and hunting, forestry and logging, owner-occupied dwellings, central and local government services and private non-profit services.13’ 14 A key result of the 1980s reforms was “a massive reduction in direct government assistance to industry” (Evans et al 1996). A look at the data that underly Figure 5 shows that during the 1980s all but five industries received non-commodity subsidies, reflecting a subsidy scheme based on the principle of universality rather than targeted support (Silverstone et al 1996). These five industries were owner-occupied dwellings, central and local government services, private non-profit services, and household domestic services. Most of the industries that received government assistance during the 1980s also received assistance in 1976-77. Electricity, gas and water, and finance, insurance etc. were the first industries to have non-commodity subsidies removed, a reflection of the 13 Consumption of fixed capital has only been recorded for central and local government non market industries since the 1995-96 inter industry study. 14 Value added for household domestic services consists entirely of compensation of employees. -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 0 20 40 60 80 10 0 12 0 71-2 76-7 81-2 86-7 90-1 94-5 -20 71-2 76-7 81-2 86-7 90-1 94-5 Consumption of fixed capital Non-commodity subsidies Non-commodity indirect taxes Operating surplus Compensation of employees WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 13 early reforms in these industries although more protracted in the case of electricity, gas and water. Transport and storage had the largest share of non-commodity subsidies in value added, followed by agriculture, and forestry and logging. 4 Inter industry linkages To assess changes in New Zealand’s production structure in terms of industry linkages this section applies input output coefficients. They are calculated from the inter industry transactions matrix and take into account both direct and indirect transactions. The production structure is examined using six types of measure: (i) backward and forward linkages, (ii) indices of industry interconnectedness, (iii) a value added production multiplier, (v) a cumulated primary input coefficient for compensation of employees and (vi) a measure of import content of final demand output. Changes in the relative importance of industries occur because industries are affected differently by (de)regulation, changes in industrial assistance, domestic and foreign conditions. Moreover, they can be the result of changes in industry composition within industries or changes in classification, like the removal of some secondary production.15 4.1 Backward and forward linkages 16 Backward and forward linkages are descriptive measures of the economic interdependence of industries in terms of dollar transactions. Backward and forward linkages, which were first proposed by (Rasmussen 1956), are calculated from the Leontief inverse or total requirement matrix [] 1 AI − −, weighted by final demand.17 The elements of the final demand weighted Leontief inverse are denoted by w ij b and calculated as follows ∑ = =N 1i i i ij w ij f f bb (4) The sum of the elements in column j 18 ∑ = = N 1i w ij w j. bb (5) shows the input requirements for a unit increase in the final demand for industry j ’s output given each industry’s share in total final demand. It is called the backward linkage 15 Removing uncharacteristic output (and its inputs) from an industry will weaken linkages. 16 The derivation of measures in sections 4.1 and 4.2 follows (Chatterjee 1989) and (Soofi 1992). 17 The total requirement coefficient matrix is weighted by final demand to avoid a possible bias. The forward linkage would be subject to a bias noted in (Chatterjee 1989) if the total requirement matrix wasn’t weighted. This is because “for the row sum to measure the forward linkage in an unbiased fashion, it is necessary to make the assumption that the demands for all sectors increase by one unit. All sectors are unlikely in practice to be of equal importance in the structure of demand, so if a small sector j uses inputs from sector i disproportionately largely, the forward linkage index will be blown up artificially by the assumption of equal expansion of all sectors” (Chatterjee 1989, p. 96). Weighting the total requirement matrix avoids this problem. 18 Subscripts .j and i. denote column and row sums respectively. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 14 as it measures the impact on the supplier industries of a unit increase in final demand.19 Expressing the backward linkage as an index ∑∑ == == N 1j w j. w j. N 1j w j. 2 w j. w j. b)N/1( b b)N/1( b)N/1( U (6) allows inter industry comparisons to be made. The numerator in equation (6) measures the average stimulus to other industries, according to each industry’s share in total final demand, resulting from a unit increase in the final demand for industry j’s output. The denominator measures the average stimulus to the whole economy resulting from a unit increase in the final demand for the output of all industries. Conversely, the index of forward linkage is given by ∑∑ == == N 1i w .i w .i N 1i w .i 2 w .i w .i b)N/1( b b)N/1( b)N/1( U (7) where the sum of the elements in row i ∑ = = N 1j w ij w .i bb (8) shows the increase in the output of sector i needed to supply the inputs required to produce an additional unit of final demand output, given each industry’s share in total final demand. To assess how New Zealand’s production structure has changed, the backward and forward linkages are calculated for each of the 25 industries for 1971-72, 1976-77, 198182, 1986-87, 1990-91 and 1994-95. The ranking of the industries in each year is shown in Figure 6. The actual measures that determined the ranking are plotted in the Appendix.20 19 (Hirschman 1958) labelled w j. U and w .i U (discussed further below) backward and forward linkages. (Rasmussen 1956) used the term “power of dispersion” for w j. U and “sensitivity of dispersion” for w .i U. 20 All measures, whose ranking only are reported in the paper, are plotted in the Appendix. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 15 Figure 6: Ranking of backward linkages (final demand weighted) 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Central government services Local government services Private non-profit services Household domestic services 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 16 Figure 7: Ranking of forward linkages (final demand weighted) 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Central government services Local government services Private non-profit services Household domestic services 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 17 Figure 8: Ranking of backward linkages (export weighted) 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Central government services Local government services Private non-profit services Household domestic services 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 18 Figure 9: Ranking of forward linkages (export weighted) 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Central government services Local government services Private non-profit services Household domestic services 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 19 Food, beverages and tobacco, trade, restaurants and hotels, construction, and central government services have the largest backward linkage (see Figure 6). A high backward linkage means that an increase in the final demand of any of these industries’ output will have a large impact on industries that supply inputs in the production of these industries’ output. Figure 6 shows large changes in the ranking of some industries. The relative importance of finance, insurance etc. and owner-occupied dwelling increased in 1986-87, while communication, which purchased the least inputs from other industries in 1981-82, jumped to 21st place in 1990-91 and 20th in 1994-95. Basic metals and chemicals, petrol, rubber etc. also have purchased more and more inputs from other industries, while agriculture, relative to other industries, has been purchasing less. The increase in the relative importance of basic metals and chemicals, petrol, rubber etc. occurred between 1976-77 and 1981-82, possibly a reflection of the “Think Big” energy and industrial projects. Trade, restaurants and hotels has had the largest forward linkage (see Figure 7); that is, following a dollar increase in final demand output, trade, restaurants and hotels must increase their output the most to provide the required inputs for the additional production of final demand. Finance, insurance etc. had the second largest forward linkage in 1994-95, increasing from 7th place in 1981-82 to 3rd place in 1986-87 and 2nd in 1990-91 and 1994-95. Forestry and logging, and owner-occupied dwellings also moved up in terms of direct and indirect sales to other industries in 1981-82, while agriculture fell. Alternatively, exports can be used as a weighting factor of the Leontief inverse. Backward and forward linkages then show the effect on industries of a unit increase in export demand. The results of weighting backward and forward linkages by exports are reported in Figures 8 and 9. Backward linkages are highest for food, beverages and tobacco, trade, restaurants and hotels, and transport and storage; that is, following a unit increase in exports demand, purchases by these industries from other industries rise more than other industries’ purchases. The relative importance of fishing and hunting, and chemicals, petrol, rubber etc. has been rising and stronger export demand in these industries is increasingly affecting the output of other industries. The export contribution of forestry and logging dropped sharply between 1971-72 and 1986-87 but rose in 199091 and 1994-95. Weighted by exports, food, beverages and tobacco, trade, restaurants and hotels, and transport and storage also have the largest forward linkages. Moreover, Figure 9 shows that the relative importance of communication and finance, insurance etc. is much higher in terms of forward linkages weighted by exports than backward linkages and increasing. This implies that a rise in exports has increasingly required more output by these industries to meet higher export demand. The relative importance of other manufacturing has also been rising. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 26 Figure 13: Ranking of column entropy (final demand weighted) 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Central government services Local government services Private non-profit services Household domestic services 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 27 The improvement in the ranking is less sharp for basic metals and more gradual for textile, apparel and leather for the demand weighted entropy measure than the backward concentration index. The overall ranking is lower for forestry and logging and higher for trade, restaurants and hotels, while the ranking for electricity, gas and water is higher and increasing. As for the backward concentration index, the ranking of other manufacturing also increases and then falls for the row entropy, but taking into account the share of other manufacturing in final demand the decline occurs earlier. A comparison of the forward concentration index (Figure 11) and the column entropy weighted by final demand (Figure 13) shows some differences. The ranking of other manufacturing, and community, social services etc. no longer declines when taking into account industries’ final demand output. This suggests less diverse outputs from other manufacturing, and community, social services etc., but greater final demand for the (existing) products of these industries. Figure 13 also shows that the relative importance of central government services has been increasing because of higher final demand. The measures discussed so far ranked industries by sales and purchases with other industries. To take into account inter industry transactions as well as deliveries to final demand, an extended version of the entropy measure can be used. The row entropy of total sales flows is calculated by normalising iNiN22i11ii fxaxaxax ++++= K (13) and then dividing both sides of (13) by i x and applying the following entropy formula to the proportions, w ij af , ∑ =        = N 1j w ij w ij w ijj. af 1 logaf)af(H (14) Figure 14, which plots the ranking of industries according to their row entropy for total sales flows, shows that finance, insurance etc., chemicals, petrol, rubber etc., paper products and printing, communication, transport and storage, and electricity, gas and water have the largest linkage. That is, following an increase in these industries’ final demand output leads to higher sales to both the intermediate and final demand sectors. The ranking has been rising steadily for agriculture and for textile, apparel and leather since 1981-82 although declining slightly between 1990-91 and 1994-95. The overall ranking of private non-profit services shifted higher between 1981-82 and 1986-87, while sales to other industries and final demand fell sharply for other manufacturing between 1986-87 and 1990-91. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 28 Figure 14: Ranking of row entropy for total sales flows 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Central government services Local government services Private non-profit services Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 29 4.3 Value added production multiplier To assess the effect of changes in final demand on value added, and hence gross domestic product, the value added production multiplier is calculated. It is measured as follows w j.jj. bvD = (15) where ∑ = = N 1i w ij w j. bb is the input requirement for a unit increase in the final demand for sector j ’s output, weighted by each sector’s share in total final demand, and j v is the share of value added in industry j ’s output. The sum of value added production multipliers across industries is one. j. D hence shows the direct and indirect contribution of a unit increase in final demand to value added in industry j relative to other industries. The ranking of industries for the value added production multiplier weighted by final demand is plotted in Figure 15. It shows that the contribution to value added rose sharply for finance, insurance etc., and community, social services etc. between 1981-82 and 1986-87 and for communication between 1981-82 and 1990-91. The relative contribution of chemical, petrol, rubber etc. has been rising moderately. Following a unit increase in final demand, the relative contribution to value added and hence GDP has been declining for textiles, apparel and leather, and construction since the early 1980s. Fabricated metal products fell sharply in the ranking between 1981-82 and 1986-87, but rose steadily thereafter. The contribution is largest for trade, restaurants and hotels, and central government services in part because of the large labour component in these industries. The ranking of industries for the production multiplier weighted by exports is plotted in Figure 16. It shows that the steady increase in the contribution to value added of fabricated metal products following the decline in the mid-1980s (Figure 15) was largely driven by exports. A comparison of Figures 15 and 16 also shows that the contribution of exports by chemical, petrol, rubber etc. has been rising faster than total final demand. The relative contribution to value added of other manufacturing has generally been falling for the export weighted production multiplier since 1981-82. This implies that the increase in the share of exports as a percent of gross output for other manufacturing (Figure 2) did not translate into higher value added or faster GDP growth. The contribution of forestry and logging fell between 1971-72 and 1986-87 but rose between 1986-87 and 1994-95 relative to other industries. For agriculture, the value added production multiplier weighted by exports has been higher and more stable than the total final demand multiplier. The overall contribution to value added following a unit increase in export demand has been increasing for finance, insurance etc., community, social services etc., and communication. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 30 Figure 15: Ranking of value added production multiplier (final demand weighted) 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Central government services Local government services Private non-profit services Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 31 Figure 16: Ranking of value added production multiplier (export weighted) 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Finance, insurance etc. Owner-occupied dwellings Community, social services etc. Central government services Local government services Private non-profit services Household domestic services 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Other manufacturing Electricity, gas and water Construction Trade, restaurants and hotels Transport and storage Communication 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals Fabricated metal products 1 3 5 7 9 11 13 15 17 19 21 23 25 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 32 4.4 Cumulated primary input coefficient for compensation of employees 24 Wages and salaries are the largest component of value added despite a fall in their share for most industries and the economy as a whole (Figures 4 and 5). The relative importance of industries in terms of contribution to employment can be assessed with the cumulated primary input coefficient for compensation of employees. The coefficient measures the effect of an increase in gross output by one industry on wages and salaries for the economy as a whole. It takes into account direct payments by an industry for salaries and wages and indirect payments, i.e. compensation of employees by industries that produce commodities used in that industry. The cumulated primary input coefficient for primary input l of industry j , lj E , is calculated as follows ∑∑ == + =K 1k lk N 1j lj jlj lj pp xm E (16) where lj p denotes the primary input l absorbed by industry j , lk p is the primary input l absorbed by final demand category k and K denotes the number of final demand categories. ]m[M lj = with BPM w =, where ]p[P w lj w= is the matrix of industries’ primary inputs weighted by their total gross output, i.e. j lj w lj x p p=. The cumulated primary input coefficient for compensation of employees, shown in Figure 17, is largest for trade, restaurant and hotels, central government services, finance, insurance etc., and construction. The coefficients for these industries ranged between 0.29 (trade, restaurants and hotels) and 0.13 (construction) in 1994-95; that is, given the existing production structure, doubling gross output of trade, restaurants and hotels would have increased compensation of employees for the whole economy by 29 percent. The cumulated primary input coefficient for compensation of employees rose sharply for finance, insurance etc. from 0.11 in 1981-82 to 0.21 in 1986-87. The coefficient also rose for community, social services etc., local government services, and private non-profit services, reflecting a growing importance of services industries as an employer in the economy. Part of the growing importance is due to manufacturing industries contracting out services that were previously done in-house, including legal services, pay systems, recruitment, design etc. Moreover, the cumulated primary input coefficient for compensation of employees has generally been trending up for paper, products and printing, basic metals, and chemicals, petrol, rubber etc. The coefficient fell markedly for textile, apparel and leather, and fabricated metal products between 1981-82 and 1990-91. 24 See (Statistics New Zealand 1989) for more details on cumulated primary input coefficients. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 33 Figure 17: Cumulated primary input coefficients of industries for compensation of employees 0.00 0.05 0.10 0.15 0.20 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Other manufacturing Electricity, gas and wat er Transport and storage Communication Construction (right axis) Trade, restaurants and hotels (right axis) 0.00 0.05 0.10 0.15 0.20 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Agriculture Fishing and hunting Forestry and logging Mining and quarrying Food, beverages and tobacco Textiles, apparel and leather 0.00 0.05 0.10 0.15 0.20 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Community, social services etc. Local government services Private non-profit services Household domestic services Owner-occupied dwellings Finance, insurance etc. (right axis) Central government services (right axis) 0.00 0.05 0.10 0.15 0.20 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Wood and wood products Paper, products and printing Fabricated metal products Chemicals, petrol, rubber etc. Non-metallic mineral products Basic metals WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 34 A change in gross output of agriculture has a large effect on wages and salaries in the economy as a whole, even though operating surplus is the largest component of value added in this industry rather than compensation of employees (Figure 5). The large impact of agriculture on compensation of employees for the economy as a whole is the result of the size of this industry and its linkages with other industries, although the coefficient has been declining somewhat. 4.5 Import content of exports, gross fixed capital formation and consumption 25 As discussed in section 2, GDP at market prices can be calculated as the sum of total use in purchasers’ prices of final demand less total economy imports. Thus, all else equal, an increase in imports leads to a decline in GDP. To assess the import content of final demand output, the cumulated primary input coefficient for final demand categories can be used. The coefficient shows the contribution of primary inputs (rows 26 to 35 in Table 1) to consumption, exports, gross fixed capital formation and change in stocks taking into account direct and indirect costs of primary inputs by all industries and the ultimate disposition of commodities produced. The matrix of cumulated primary input coefficients for categories of final demand Y is calculated as follows ww SMQY += (17) where ]q[Q w ik w= with ∑∑ == + =L 1l N 1i ik w ik lkik sq q q is industry i’s weighted output absorbed by final demand category k , ]s[S w lk w= with ∑∑ == + =L 1l N 1i lk w lk lkik sq s s is the weighted primary input l absorbed by final demand category k , where L denotes the number of primary input categories. Cumulated primary input coefficients for final demand categories across primary inputs sum to one. The coefficients hence show the contribution of primary inputs to the cost of producing final demand output. The cumulated primary input coefficients for exports, gross fixed capital formation and consumption are plotted in Figures 18 to 20. Primary inputs are broken down into components of value added (i.e. compensation of employees, operating surplus, non-commodity indirect taxes, non-commodity subsidies and consumption of fixed capital), imports and other, where “other” includes commodity indirect taxes, commodity subsidies, second hand assets and import duty. Note that subsidies in 1971-72 also include non-commodity subsidies.26 The import content of exports, as measured by the cumulated primary input coefficient for exports, rose from around 13.2 percent in 1971-72 to about 20 percent in 1981-82 (see Figure 18). In 1986-87 it fell to 17.7 percent and increased from 18 percent in 1990-91 to 18.3 percent in 1994-95. The relative decline in the import cost of exports in 1986-87 coincides with an increase in “other” costs, largely due to higher commodity indirect taxes and lower commodity and non-commodity subsidies. Also contributing to the relative 25 See (Statistics New Zealand 1989) for more details on cumulated primary input coefficients for categories of final demand. 26 See footnote 12. WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 35 decline in import cost was increased consumption of fixed capital following the restructuring of the reforms. The increase in the contribution of imports to the costs of exports between 1986-87 and 1994-95 coincides with a decline in the contribution of compensation of employees. Operating surplus from exports fell between 1971-72 and 1990-91, but rose sharply in 1994-95. Figure 18: Cumulated primary input coefficients for exports As noted in section 2, the share of domestically sourced gross fixed capital formation in aggregate gross output declined, from 9.6 percent in 1971-72 to 7.4 percent in 1994-95 (Figure 1). This decline was more than offset by an increase in the import content of gross fixed capital formation (Figure 19). The import cost of gross fixed capital formation rose from 27.1 percent in 1971-72 to 38.7 percent in 1994-95 while the contribution of labour cost in the form of compensation of employees declined. The contribution of consumption of fixed capital to the cost of gross fixed capital formation fell between 197172 and 1981-82, but was higher in 1990-91 and 1994-95. 38.9 36.5 40.7 39.5 38.2 35.2 36.5 32.8 29.7 27.0 25.4 30.1 9.5 8.4 7.0 8.8 10.3 10.2 13.2 19.5 20.0 17.7 18.0 18.3 2.0 2.4 2.3 5.9 4.5 3.6 -1.3 -1.4 -0.9 -10 0 10 20 30 40 50 60 70 80 90 100 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 Compensation of employees Operating surplus Non-commodity indirect taxes Non-commodity subsidies Consumption of fixed capital Imports Other WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 42 Figure A3: Backward linkages (export weighted) 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 0123456 Food, beverages and tobacco Trade, restaurants and hotels Transport and storage Textiles, apparel and leather Fabricated metal products Agriculture Wood and wood products Chemicals, petrol, rubber etc. Paper, products and printing Basic metals Forestry and logging Fishing and hunting Construction Other manufacturing Private non-profit services Non-metallic mineral products Mining and quarrying Local government services Finance, insurance etc. Community, social services etc. Communication Central government services Electricity, gas and water Owner-occupied dwellings Household domestic services 01234567 Food, beverages and tobacco Trade, restaurants and hotels Textiles, apparel and leather Transport and storage Agriculture Fabricated metal products Basic metals Paper, products and printing Chemicals, petrol, rubber etc. Wood and wood products Fishing and hunting Other manufacturing Construction Private non-profit services Non-metallic mineral products Forestry and logging Mining and quarrying Community, social services etc. Finance, insurance etc. Local government services Communication Central government services Electricity, gas and water Owner-occupied dwellings Household domestic services 0123456 Food, beverages and tobacco Textiles, apparel and leather Trade, restaurants and hotels Transport and storage Agriculture Paper, products and printing Basic metals Fishing and hunting Fabricated metal products Chemicals, petrol, rubber etc. Private non-profit services Wood and wood products Other manufacturing Construction Finance, insurance etc. Non-metallic mineral products Community, social services etc. Mining and quarrying Local government services Owner-occupied dwellings Communication Central government services Forestry and logging Electricity, gas and water Household domestic services 01234567 Food, beverages and tobacco Textiles, apparel and leather Trade, restaurants and hotels Transport and storage Agriculture Paper, products and printing Basic metals Fabricated metal products Wood and wood products Chemicals, petrol, rubber etc. Other manufacturing Construction Fishing and hunting Non-metallic mineral products Finance, insurance etc. Mining and quarrying Community, social services etc. Private non-profit services Local government services Forestry and logging Owner-occupied dwellings Household domestic services Central government services Communication Electricity, gas and water 01234567 Food, beverages and tobacco Textiles, apparel and leather Agriculture Trade, restaurants and hotels Transport and storage Paper, products and printing Fabricated metal products Private non-profit services Wood and wood products Basic metals Fishing and hunting Construction Non-metallic mineral products Other manufacturing Local government services Chemicals, petrol, rubber etc. Forestry and logging Community, social services etc. Mining and quarrying Owner-occupied dwellings Central government services Finance, insurance etc. Electricity, gas and water Communication Household domestic services 024681012 Food, beverages and tobacco Agriculture Trade, restaurants and hotels Transport and storage Paper, products and printing Textiles, apparel and leather Fabricated metal products Wood and wood products Fishing and hunting Chemicals, petrol, rubber etc. Private non-profit services Forestry and logging Basic metals Construction Mining and quarrying Non-metallic mineral products Other manufacturing Community, social services etc. Local government services Central government services Owner-occupied dwellings Finance, insurance etc. Communication Electricity, gas and water Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 43 Figure A4: Forward linkages (export weighted) 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 012345678 Food, beverages and tobacco Trade, restaurants and hotels Transport and storage Agriculture Textiles, apparel and leather Paper, products and printing Fabricated metal products Basic metals Chemicals, petrol, rubber etc. Finance, insurance etc. Wood and wood products Forestry and logging Communication Mining and quarrying Community, social services etc. Central government services Private non-profit services Non-metallic mineral products Fishing and hunting Construction Other manufacturing Electricity, gas and water Local government services Owner-occupied dwellings Household domestic services 0246810 Food, beverages and tobacco Trade, restaurants and hotels Transport and storage Agriculture Textiles, apparel and leather Fabricated metal products Paper, products and printing Finance, insurance etc. Chemicals, petrol, rubber etc. Basic metals Wood and wood products Fishing and hunting Construction Mining and quarrying Community, social services etc. Communication Non-metallic mineral products Forestry and logging Other manufacturing Central government services Local government services Private non-profit services Electricity, gas and water Owner-occupied dwellings Household domestic services 01234567 Food, beverages and tobacco Trade, restaurants and hotels Transport and storage Agriculture Textiles, apparel and leather Finance, insurance etc. Fabricated metal products Paper, products and printing Chemicals, petrol, rubber etc. Basic metals Wood and wood products Communication Community, social services etc. Fishing and hunting Mining and quarrying Other manufacturing Non-metallic mineral products Central government services Construction Private non-profit services Forestry and logging Local government services Electricity, gas and water Owner-occupied dwellings Household domestic services 01234567 Food, beverages and tobacco Trade, restaurants and hotels Transport and storage Agriculture Fabricated metal products Textiles, apparel and leather Basic metals Paper, products and printing Chemicals, petrol, rubber etc. Finance, insurance etc. Wood and wood products Mining and quarrying Forestry and logging Communication Community, social services etc. Other manufacturing Fishing and hunting Construction Non-metallic mineral products Central government services Private non-profit services Electricity, gas and water Local government services Household domestic services Owner-occupied dwellings 01234567 Trade, restaurants and hotels Food, beverages and tobacco Transport and storage Fabricated metal products Agriculture Textiles, apparel and leather Chemicals, petrol, rubber etc. Finance, insurance etc. Paper, products and printing Wood and wood products Forestry and logging Basic metals Mining and quarrying Communication Community, social services etc. Other manufacturing Fishing and hunting Non-metallic mineral products Central government services Construction Private non-profit services Electricity, gas and water Local government services Household domestic services Owner-occupied dwellings 024681012 Food, beverages and tobacco Trade, restaurants and hotels Agriculture Transport and storage Fabricated metal products Paper, products and printing Chemicals, petrol, rubber etc. Forestry and logging Textiles, apparel and leather Wood and wood products Basic metals Fishing and hunting Finance, insurance etc. Non-metallic mineral products Central government services Community, social services etc. Mining and quarrying Communication Other manufacturing Electricity, gas and water Local government services Private non-profit services Construction Owner-occupied dwellings Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 44 Figure A5: Backward concentration index 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 012345 Local government services Food, beverages and tobacco Private non-profit services Construction Wood and wood products Basic metals Textiles, apparel and leather Other manufacturing Non-metallic mineral products Fishing and hunting Trade, restaurants and hotels Agriculture Fabricated metal products Transport and storage Paper, products and printing Community, social services etc. Chemicals, petrol, rubber etc. Central government services Communication Mining and quarrying Owner-occupied dwellings Forestry and logging Finance, insurance etc. Electricity, gas and water Household domestic services 012345 Food, beverages and tobacco Local government services Construction Private non-profit services Other manufacturing Textiles, apparel and leather Wood and wood products Non-metallic mineral products Fishing and hunting Trade, restaurants and hotels Agriculture Fabricated metal products Basic metals Community, social services etc. Transport and storage Paper, products and printing Chemicals, petrol, rubber etc. Central government services Mining and quarrying Communication Owner-occupied dwellings Finance, insurance etc. Forestry and logging Electricity, gas and water Household domestic services 012345 Other manufacturing Food, beverages and tobacco Local government services Construction Private non-profit services Non-metallic mineral products Wood and wood products Textiles, apparel and leather Owner-occupied dwellings Trade, restaurants and hotels Fishing and hunting Mining and quarrying Agriculture Paper, products and printing Community, social services etc. Fabricated metal products Basic metals Chemicals, petrol, rubber etc. Transport and storage Central government services Finance, insurance etc. Electricity, gas and water Forestry and logging Communication Household domestic services 012345 Construction Food, beverages and tobacco Local government services Other manufacturing Textiles, apparel and leather Wood and wood products Non-metallic mineral products Owner-occupied dwellings Private non-profit services Community, social services etc. Paper, products and printing Household domestic services Mining and quarrying Transport and storage Fishing and hunting Trade, restaurants and hotels Agriculture Chemicals, petrol, rubber etc. Basic metals Fabricated metal products Forestry and logging Central government services Finance, insurance etc. Communication Electricity, gas and water 012345 Local government services Owner-occupied dwellings Food, beverages and tobacco Construction Private non-profit services Other manufacturing Wood and wood products Textiles, apparel and leather Non-metallic mineral products Fishing and hunting Mining and quarrying Transport and storage Paper, products and printing Trade, restaurants and hotels Fabricated metal products Community, social services etc. Forestry and logging Agriculture Chemicals, petrol, rubber etc. Central government services Basic metals Finance, insurance etc. Electricity, gas and water Communication Household domestic services 012345 Construction Local government services Private non-profit services Mining and quarrying Owner-occupied dwellings Food, beverages and tobacco Non-metallic mineral products Wood and wood products Fishing and hunting Other manufacturing Transport and storage Forestry and logging Central government services Fabricated metal products Paper, products and printing Trade, restaurants and hotels Community, social services etc. Agriculture Chemicals, petrol, rubber etc. Basic metals Textiles, apparel and leather Finance, insurance etc. Electricity, gas and water Communication Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 45 Figure A6: Forward concentration index 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 012345 Finance, insurance etc. Trade, restaurants and hotels Transport and storage Construction Chemicals, petrol, rubber etc. Agriculture Fabricated metal products Electricity, gas and water Paper, products and printing Mining and quarrying Communication Community, social services etc. Food, beverages and tobacco Wood and wood products Forestry and logging Non-metallic mineral products Basic metals Textiles, apparel and leather Central government services Local government services Fishing and hunting Private non-profit services Other manufacturing Owner-occupied dwellings Household domestic services 012345 Finance, insurance etc. Trade, restaurants and hotels Transport and storage Chemicals, petrol, rubber etc. Construction Agriculture Fabricated metal products Electricity, gas and water Paper, products and printing Mining and quarrying Communication Community, social services etc. Food, beverages and tobacco Forestry and logging Wood and wood products Non-metallic mineral products Basic metals Textiles, apparel and leather Local government services Central government services Fishing and hunting Private non-profit services Other manufacturing Owner-occupied dwellings Household domestic services 012345 Finance, insurance etc. Trade, restaurants and hotels Transport and storage Fabricated metal products Construction Chemicals, petrol, rubber etc. Agriculture Mining and quarrying Electricity, gas and water Paper, products and printing Community, social services etc. Communication Food, beverages and tobacco Wood and wood products Basic metals Non-metallic mineral products Forestry and logging Textiles, apparel and leather Local government services Central government services Private non-profit services Fishing and hunting Other manufacturing Household domestic services Owner-occupied dwellings 012345 Trade, restaurants and hotels Finance, insurance etc. Chemicals, petrol, rubber etc. Fabricated metal products Construction Transport and storage Agriculture Community, social services etc. Paper, products and printing Electricity, gas and water Wood and wood products Communication Food, beverages and tobacco Mining and quarrying Non-metallic mineral products Basic metals Forestry and logging Textiles, apparel and leather Other manufacturing Local government services Central government services Private non-profit services Fishing and hunting Household domestic services Owner-occupied dwellings 012345 Trade, restaurants and hotels Finance, insurance etc. Chemicals, petrol, rubber etc. Fabricated metal products Transport and storage Construction Agriculture Paper, products and printing Community, social services etc. Electricity, gas and water Basic metals Food, beverages and tobacco Wood and wood products Mining and quarrying Communication Non-metallic mineral products Forestry and logging Textiles, apparel and leather Local government services Central government services Other manufacturing Fishing and hunting Private non-profit services Owner-occupied dwellings Household domestic services 012345 Trade, restaurants and hotels Finance, insurance etc. Transport and storage Fabricated metal products Chemicals, petrol, rubber etc. Wood and wood products Paper, products and printing Construction Non-metallic mineral products Agriculture Electricity, gas and water Community, social services etc. Mining and quarrying Forestry and logging Communication Basic metals Food, beverages and tobacco Local government services Textiles, apparel and leather Central government services Other manufacturing Private non-profit services Fishing and hunting Owner-occupied dwellings Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 46 Figure A7: Row entropy (final demand weighted) 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 0 0.2 0.4 0.6 0.8 1 Construction Food, beverages and tobacco Local government services Wood and wood products Trade, restaurants and hotels Agriculture Textiles, apparel and leather Non-metallic mineral products Private non-profit services Fabricated metal products Basic metals Transport and storage Paper, products and printing Chemicals, petrol, rubber etc. Other manufacturing Community, social services etc. Finance, insurance etc. Electricity, gas and water Mining and quarrying Fishing and hunting Communication Central government services Forestry and logging Owner-occupied dwellings Household domestic services 0 0.2 0.4 0.6 0.8 1 Construction Food, beverages and tobacco Wood and wood products Local government services Agriculture Textiles, apparel and leather Trade, restaurants and hotels Non-metallic mineral products Fabricated metal products Private non-profit services Paper, products and printing Transport and storage Other manufacturing Chemicals, petrol, rubber etc. Basic metals Community, social services etc. Finance, insurance etc. Fishing and hunting Mining and quarrying Electricity, gas and water Central government services Communication Forestry and logging Owner-occupied dwellings Household domestic services 0 0.2 0.4 0.6 0.8 1 Construction Food, beverages and tobacco Local government services Wood and wood products Trade, restaurants and hotels Non-metallic mineral products Other manufacturing Textiles, apparel and leather Paper, products and printing Agriculture Private non-profit services Chemicals, petrol, rubber etc. Fabricated metal products Transport and storage Mining and quarrying Basic metals Community, social services etc. Finance, insurance etc. Fishing and hunting Owner-occupied dwellings Electricity, gas and water Central government services Forestry and logging Communication Household domestic services 0 0.2 0.4 0.6 0.8 1 Construction Food, beverages and tobacco Wood and wood products Paper, products and printing Other manufacturing Local government services Non-metallic mineral products Textiles, apparel and leather Community, social services etc. Transport and storage Agriculture Mining and quarrying Trade, restaurants and hotels Chemicals, petrol, rubber etc. Fabricated metal products Basic metals Private non-profit services Owner-occupied dwellings Finance, insurance etc. Household domestic services Forestry and logging Fishing and hunting Electricity, gas and water Central government services Communication 0 0.2 0.4 0.6 0.8 1 Construction Wood and wood products Food, beverages and tobacco Local government services Non-metallic mineral products Private non-profit services Trade, restaurants and hotels Owner-occupied dwellings Paper, products and printing Transport and storage Textiles, apparel and leather Fabricated metal products Other manufacturing Agriculture Mining and quarrying Community, social services etc. Chemicals, petrol, rubber etc. Forestry and logging Finance, insurance etc. Fishing and hunting Electricity, gas and water Basic metals Central government services Communication Household domestic services 0 0.2 0.4 0.6 0.8 1 Construction Food, beverages and tobacco Private non-profit services Local government services Wood and wood products Non-metallic mineral products Trade, restaurants and hotels Agriculture Paper, products and printing Mining and quarrying Transport and storage Fabricated metal products Chemicals, petrol, rubber etc. Other manufacturing Owner-occupied dwellings Community, social services etc. Fishing and hunting Textiles, apparel and leather Finance, insurance etc. Basic metals Central government services Forestry and logging Electricity, gas and water Communication Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 47 Figure A8: Column entropy (final demand weighted) 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 00.511.522.533.5 Trade, restaurants and hotels Finance, insurance etc. Construction Transport and storage Fabricated metal products Food, beverages and tobacco Chemicals, petrol, rubber etc. Community, social services etc. Agriculture Central government services Electricity, gas and water Paper, products and printing Communication Textiles, apparel and leather Wood and wood products Forestry and logging Mining and quarrying Local government services Private non-profit services Basic metals Other manufacturing Non-metallic mineral products Fishing and hunting Owner-occupied dwellings Household domestic services 00.511.522.533.5 Trade, restaurants and hotels Finance, insurance etc. Construction Transport and storage Fabricated metal products Food, beverages and tobacco Chemicals, petrol, rubber etc. Community, social services etc. Agriculture Paper, products and printing Electricity, gas and water Communication Central government services Textiles, apparel and leather Forestry and logging Basic metals Wood and wood products Local government services Mining and quarrying Private non-profit services Other manufacturing Non-metallic mineral products Owner-occupied dwellings Fishing and hunting Household domestic services 00.511.522.533.5 Trade, restaurants and hotels Finance, insurance etc. Construction Fabricated metal products Transport and storage Food, beverages and tobacco Chemicals, petrol, rubber etc. Community, social services etc. Agriculture Electricity, gas and water Paper, products and printing Textiles, apparel and leather Central government services Communication Wood and wood products Local government services Forestry and logging Basic metals Private non-profit services Owner-occupied dwellings Mining and quarrying Fishing and hunting Other manufacturing Non-metallic mineral products Household domestic services 00.511.522.533.5 Trade, restaurants and hotels Fabricated metal products Construction Finance, insurance etc. Food, beverages and tobacco Transport and storage Chemicals, petrol, rubber etc. Community, social services etc. Agriculture Paper, products and printing Textiles, apparel and leather Electricity, gas and water Wood and wood products Basic metals Communication Central government services Local government services Forestry and logging Private non-profit services Owner-occupied dwellings Non-metallic mineral products Fishing and hunting Other manufacturing Mining and quarrying Household domestic services 00.511.522.533.5 Trade, restaurants and hotels Construction Fabricated metal products Transport and storage Food, beverages and tobacco Finance, insurance etc. Chemicals, petrol, rubber etc. Community, social services etc. Agriculture Paper, products and printing Textiles, apparel and leather Electricity, gas and water Wood and wood products Communication Basic metals Central government services Local government services Forestry and logging Private non-profit services Owner-occupied dwellings Mining and quarrying Other manufacturing Non-metallic mineral products Fishing and hunting Household domestic services 00.511.522.533.5 Trade, restaurants and hotels Fabricated metal products Construction Transport and storage Finance, insurance etc. Food, beverages and tobacco Chemicals, petrol, rubber etc. Agriculture Community, social services etc. Paper, products and printing Electricity, gas and water Wood and wood products Textiles, apparel and leather Communication Forestry and logging Central government services Local government services Private non-profit services Owner-occupied dwellings Basic metals Non-metallic mineral products Other manufacturing Fishing and hunting Mining and quarrying Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 48 Figure A9: Row entropy for total sales flows 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 0 0.2 0.4 0.6 0.8 1 1.2 Finance, insurance etc. Chemicals, petrol, rubber etc. Paper, products and printing Communication Transport and storage Electricity, gas and water Mining and quarrying Construction Fabricated metal products Non-metallic mineral products Trade, restaurants and hotels Wood and wood products Community, social services etc. Agriculture Basic metals Forestry and logging Textiles, apparel and leather Fishing and hunting Food, beverages and tobacco Local government services Other manufacturing Private non-profit services Central government services Owner-occupied dwellings Household domestic services 0 0.2 0.4 0.6 0.8 1 1.2 Finance, insurance etc. Chemicals, petrol, rubber etc. Electricity, gas and water Transport and storage Paper, products and printing Communication Mining and quarrying Fabricated metal products Construction Wood and wood products Trade, restaurants and hotels Non-metallic mineral products Community, social services etc. Agriculture Textiles, apparel and leather Basic metals Forestry and logging Local government services Fishing and hunting Food, beverages and tobacco Other manufacturing Private non-profit services Central government services Owner-occupied dwellings Household domestic services 0 0.2 0.4 0.6 0.8 1 1.2 Finance, insurance etc. Chemicals, petrol, rubber etc. Paper, products and printing Electricity, gas and water Transport and storage Communication Fabricated metal products Mining and quarrying Wood and wood products Community, social services etc. Construction Trade, restaurants and hotels Non-metallic mineral products Other manufacturing Basic metals Agriculture Local government services Fishing and hunting Textiles, apparel and leather Forestry and logging Private non-profit services Food, beverages and tobacco Central government services Household domestic services Owner-occupied dwellings 0 0.2 0.4 0.6 0.8 1 1.2 Finance, insurance etc. Chemicals, petrol, rubber etc. Paper, products and printing Electricity, gas and water Communication Transport and storage Non-metallic mineral products Community, social services etc. Mining and quarrying Fabricated metal products Trade, restaurants and hotels Basic metals Other manufacturing Wood and wood products Construction Agriculture Forestry and logging Local government services Household domestic services Fishing and hunting Textiles, apparel and leather Food, beverages and tobacco Private non-profit services Central government services Owner-occupied dwellings 0 0.2 0.4 0.6 0.8 1 1.2 Finance, insurance etc. Chemicals, petrol, rubber etc. Paper, products and printing Electricity, gas and water Transport and storage Communication Mining and quarrying Non-metallic mineral products Trade, restaurants and hotels Basic metals Fabricated metal products Community, social services etc. Wood and wood products Forestry and logging Fishing and hunting Other manufacturing Construction Agriculture Local government services Textiles, apparel and leather Food, beverages and tobacco Private non-profit services Central government services Owner-occupied dwellings Household domestic services 0 0.2 0.4 0.6 0.8 1 1.2 Mining and quarrying Paper, products and printing Chemicals, petrol, rubber etc. Finance, insurance etc. Transport and storage Electricity, gas and water Communication Wood and wood products Basic metals Other manufacturing Non-metallic mineral products Fabricated metal products Community, social services etc. Trade, restaurants and hotels Forestry and logging Construction Agriculture Local government services Textiles, apparel and leather Fishing and hunting Food, beverages and tobacco Private non-profit services Central government services Owner-occupied dwellings Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 49 Figure A10: Value added production multiplier (final demand weighted) 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 0 0.02 0.04 0.06 0.08 0.1 0.12 Trade, restaurants and hotels Central government services Owner-occupied dwellings Finance, insurance etc. Community, social services etc. Food, beverages and tobacco Transport and storage Fabricated metal products Construction Agriculture Private non-profit services Local government services Communication Paper, products and printing Wood and wood products Forestry and logging Other manufacturing Basic metals Mining and quarrying Chemicals, petrol, rubber etc. Textiles, apparel and leather Non-metallic mineral products Electricity, gas and water Fishing and hunting Household domestic services 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 Central government services Trade, restaurants and hotels Owner-occupied dwellings Finance, insurance etc. Food, beverages and tobacco Community, social services etc. Transport and storage Construction Local government services Agriculture Fabricated metal products Private non-profit services Communication Forestry and logging Paper, products and printing Textiles, apparel and leather Wood and wood products Other manufacturing Mining and quarrying Electricity, gas and water Chemicals, petrol, rubber etc. Non-metallic mineral products Fishing and hunting Basic metals Household domestic services 0 0.02 0.04 0.06 0.08 0.1 0.12 Central government services Trade, restaurants and hotels Owner-occupied dwellings Food, beverages and tobacco Finance, insurance etc. Community, social services etc. Construction Transport and storage Private non-profit services Agriculture Local government services Fabricated metal products Textiles, apparel and leather Forestry and logging Wood and wood products Mining and quarrying Communication Paper, products and printing Other manufacturing Non-metallic mineral products Electricity, gas and water Chemicals, petrol, rubber etc. Fishing and hunting Basic metals Household domestic services 0 0.02 0.04 0.06 0.08 0.1 0.12 Central government services Trade, restaurants and hotels Food, beverages and tobacco Construction Owner-occupied dwellings Fabricated metal products Transport and storage Local government services Agriculture Textiles, apparel and leather Community, social services etc. Finance, insurance etc. Private non-profit services Forestry and logging Paper, products and printing Wood and wood products Mining and quarrying Other manufacturing Non-metallic mineral products Communication Household domestic services Electricity, gas and water Chemicals, petrol, rubber etc. Basic metals Fishing and hunting 0 0.02 0.04 0.06 0.08 0.1 0.12 Trade, restaurants and hotels Central government services Food, beverages and tobacco Construction Transport and storage Owner-occupied dwellings Fabricated metal products Agriculture Local government services Community, social services etc. Textiles, apparel and leather Private non-profit services Finance, insurance etc. Fishing and hunting Wood and wood products Paper, products and printing Forestry and logging Non-metallic mineral products Other manufacturing Communication Mining and quarrying Electricity, gas and water Chemicals, petrol, rubber etc. Basic metals Household domestic services 0 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 Trade, restaurants and hotels Central government services Food, beverages and tobacco Construction Agriculture Transport and storage Fabricated metal products Owner-occupied dwellings Finance, insurance etc. Community, social services etc. Local government services Textiles, apparel and leather Private non-profit services Mining and quarrying Fishing and hunting Paper, products and printing Forestry and logging Wood and wood products Non-metallic mineral products Other manufacturing Chemicals, petrol, rubber etc. Communication Electricity, gas and water Basic metals Household domestic services WP 03/01 Changes in New Zealand’s Production Structure: An Input Output Analysis 50 Figure A11: Value added production multiplier (export weighted) 1971-72 1976-77 1981-82 1986-87 1990-91 1994-95 0 0.02 0.04 0.06 0.08 0.1 0.12 Trade, restaurants and hotels Food, beverages and tobacco Transport and storage Agriculture Fabricated metal products Textiles, apparel and leather Forestry and logging Paper, products and printing Wood and wood products Fishing and hunting Basic metals Chemicals, petrol, rubber etc. Mining and quarrying Community, social services etc. Finance, insurance etc. Communication Other manufacturing Private non-profit services Central government services Non-metallic mineral products Local government services Construction Owner-occupied dwellings Electricity, gas and water Household domestic services 0 0.02 0.04 0.06 0.08 0.1 0.12 Food, beverages and tobacco Trade, restaurants and hotels Transport and storage Agriculture Textiles, apparel and leather Fabricated metal products Paper, products and printing Fishing and hunting Forestry and logging Wood and wood products Mining and quarrying Communication Other manufacturing Finance, insurance etc. Community, social services etc. Private non-profit services Basic metals Chemicals, petrol, rubber etc. Central government services Non-metallic mineral products Local government services Construction Owner-occupied dwellings Electricity, gas and water Household domestic services 0 0.02 0.04 0.06 0.08 0.1 0.12 Food, beverages and tobacco Trade, restaurants and hotels Transport and storage Agriculture Textiles, apparel and leather Private non-profit services Paper, products and printing Finance, insurance etc. Fishing and hunting Community, social services etc. Communication Wood and wood products Fabricated metal products Other manufacturing Mining and quarrying Chemicals, petrol, rubber etc. Non-metallic mineral products Central government services Basic metals Owner-occupied dwellings Forestry and logging Local government services Construction Electricity, gas and water Household domestic services 0 0.02 0.04 0.06 0.08 0.1 0.12 Food, beverages and tobacco Trade, restaurants and hotels Transport and storage Textiles, apparel and leather Agriculture Paper, products and printing Finance, insurance etc. Fabricated metal products Other manufacturing Wood and wood products Non-metallic mineral products Basic metals Private non-profit services Forestry and logging Community, social services etc. Mining and quarrying Fishing and hunting Central government services Construction Local government services Communication Owner-occupied dwellings Chemicals, petrol, rubber etc. Household domestic services Electricity, gas and water 0 0.02 0.04 0.06 0.08 0.1 0.12 Food, beverages and tobacco Trade, restaurants and hotels Agriculture Transport and storage Textiles, apparel and leather Paper, products and printing Private non-profit services Fishing and hunting Fabricated metal products Wood and wood products Forestry and logging Non-metallic mineral products Other manufacturing Central government services Community, social services etc. Basic metals Local government services Finance, insurance etc. Mining and quarrying Owner-occupied dwellings Communication Construction Chemicals, petrol, rubber etc. Electricity, gas and water Household domestic services 0 0.05 0.1 0.15 0.2 Food, beverages and tobacco Agriculture Trade, restaurants and hotels Transport and storage Paper, products and printing Forestry and logging Textiles, apparel and leather Fishing and hunting Fabricated metal products Wood and wood products Mining and quarrying Private non-profit services Non-metallic mineral products Central government services Other manufacturing Chemicals, petrol, rubber etc. Community, social services etc. Construction Basic metals Local government services Communication Owner-occupied dwellings Finance, insurance etc. Electricity, gas and water Household domestic services