A Proposed Method of Correcting the Construction Entries in the 2006 Philippine Input-Output Table

• Main Authors: Lamberte, Albert E., Yu, Krista Danielle, Cororation, Caesar
• Format: text
• Published: Animo Repository 2017
• Subjects: Construction; IO Matrix; Philippines; PSA; Construction Engineering and Management
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/75; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1046&context=res_aki
• Institution: De La Salle University

The construction of national input-output (IO) tables follows internationally acceptable standards such as the United Nations Systems of National Accounts (UN SNA) and European System of Accounts (ESA). These standards are used to ensure tractability and coherence between country tables. The 2006 Philippine IO table published by the Philippine Statistics Authority (PSA) assumes that the construction sector does not provide any input to the production of output for any economic sector. With the booming infrastructure development in the Philippines, this assumption that intermediate demand for construction output has a value of zero is unreasonable. This study proposes a corrective approach to determine the entries for the construction sector by utilizing the sectoral shares of intermediate demand from the 2000 Philippine IO table. This yields a more realistic inter-industry transactions matrix that will provide better insights for economic planning and impact analysis.