Estimating growth contributions by structural decomposition of input-output tables

Abstract

This paper presents a case-study to demonstrate the calculation methods of growth contributions using structural decompositions of input-output tables and their Hungarian applications. Although the required data are available with a considerable time-lag, results show that taking backward linkages through demand for inputs and value chain multipliers into account can significantly alter the picture on the growth effects of industries and final demand categories by the conventional approach based on quarterly GDP calculations. This can be instructive for analysts and policy-and decision-makers not only in Hungary, but also in other countries. The study was performed by using public macroeconomic and sectoral data obtained from the Hungarian Central Statistical Office.