Piacentini, M., and F. Fortanier, (2015) Heterogeneity and Trade in Value “Firm Added,” OECD Working Paper. Timmer, M. P., Dietzenbacher, E., Los, B., Stehrer, R. and de Vries, G. J. (2015), "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production", Review of International Economics., 23: 575–605 Appendix 1. Framework of Estimation of Split IO table by quadratic programming methodology The framework to implement quadratic programming is described below. Set initial elements of the split IO table First, we must decide an initial value of each element of the split IO table. While some parts are transcribed from the original IO table, some are needed to be based on the information from micro data. Thus, we put the initial data in the following way (Appendix Figure 1); Japanese manufacturing output used by Japanese manufacturing input sector’s sector’s By definition, exporting output is zero. The original element is divided into activity’s domestic shipment activity’s output used by exporting and domestic shipment activity, proportional to the share of sales of exporting and domestic shipment activity in demand side, calculated in III. 2. (2) b). Japanese manufacturing output used by foreign input sector’s sectors’ The original element is transcribed in exporting activity and zero is recorded in domestic shipment activity. Japanese manufacturing output used by Japanese final demand sector’s The original element is transcribed in domestic shipment activity and zero is recorded in exporting activity. Japanese manufacturing output used by foreign final demand. sector’s countries’ The original element is transcribed in exporting activity and zero is recorded in domestic shipment. foreign output used by Japanese manufacturing input sectors’ sector’s The original element is split proportional to the share of input of exporting and domestic shipment activity in demand side, calculated in III. 2. (2) b). Output of exporting and non-exporting sector of Japanese manufacturing sector
Piacentini, M., and F. Fortanier, (2015) “Firm Heterogeneity and Trade in Value Added,” OECD Working Paper. Timmer, M. P., Dietzenbacher, E., Los, B., Stehrer, R. and de Vries, G. J. (2015), "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production", Review of International Economics., 23: 575–605 Appendix 1. Framework of Estimation of Split IO table by quadratic programming methodology The framework to implement quadratic programming is described below. Set initial elements of the split IO table First, we must decide an initial value of each element of the split IO table. While some parts are transcribed from the original IO table, some are needed to be based on the information from micro data. Thus, we put the initial data in the following way (Appendix Figure 1); Japanese manufacturing sector’s output used by Japanese manufacturing sector’s input By definition, exporting activity’s output is zero. The original element is divided into domestic shipment activity’s output used by exporting and domestic shipment activity, proportional to the share of sales of exporting and domestic shipment activity in demand side, calculated in III. 2. (2) b). Japanese manufacturing sector’s output used by foreign sectors’ input The original element is transcribed in exporting activity and zero is recorded in domestic shipment activity. Japanese manufacturing sector’s output used by Japanese final demand The original element is transcribed in domestic shipment activity and zero is recorded in exporting activity. Japanese manufacturing sector’s output used by foreign countries’ final demand. The original element is transcribed in exporting activity and zero is recorded in domestic shipment. foreign sectors’ output used by Japanese manufacturing sector’s input The original element is split proportional to the share of input of exporting and domestic shipment activity in demand side, calculated in III. 2. (2) b). Output of exporting and non-exporting sector of Japanese manufacturing sector
2543_20160520031_KI_KF_ID_FirmHeterogeneity_20160520.docx