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What is the relationship between Input-Output Table and National Accounts?

Input-Output statistics include the Supply and Use Tables(SUTs) and Input-Output tables(IOTs). Both consist of intermediate inputs, primary inputs, and final demand. Take the SUTs as an example to describe the relationship.

Intermediate inputs, which are the main structure of the use table of SUTs, express the sources and distributions of the various goods and services and show the interrelationships between industries with regard to production technology in the economy.

Primary inputs including compensation of employees, operating surplus, consumption of fixed capital, and net taxes on production and imports constitute value added by the income approach. And primary inputs of industries are the contribution to national income and components of value added by the production approach. The GDP measured from the production and the income side can be obtained by adding the industrial value added, net import duties, value-added taxes, trade margin and transportation margin on the supply table.

Final demand includes private final consumption, government final consumption, fixed capital formation, change in inventories, and exports. It expresses the structure of exports and demand for goods and services from the consumption and investment sectors; if deducting imports, it consequently represents GDP assessed from the expenditure approach.

SUTs can check production, income and expenditure of GDP data, allowing the analysis of each industry's production inputs and outputs distribution, providing the interrelationship between each account, and facilitating the improvement of the quality on national accounts statistics.