Employing Input-Output Model to Assess …
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IO model. The IO model can be used to explore and analyze the interdependence
between industries in a region. When the final demand for certain sector changes, the
output value change of each industrial sector is estimated [41]. This model mathematically expresses the balance between production and distribution and use in various
sectors of the national economy, or the balance between production and consumption
in various sectors of the national economy, as reflected in the IO table, and establishes the corresponding IO After the mathematical model, the internal connection
between the various sectors of the national economy and the various links of social
reproduction can be revealed through computer operations.
3.2 The Features of IO Method
The IO analysis method is an economic quantitative analysis method that puts “input”
and “output” together for analysis and research. Generally speaking, “input” refers
to the consumption and use of various elements required by the industrial sector
in the production process, such as the consumption and use of material products,
the consumption and use of labor, and the consumption and acceptance of various
production resources or productive services, etc. [6, 39]. The input here includes
material production and labor activities. The “output” here refers to the distribution
and use of the production results of the industrial sector, that is, the physical movement of the material product or the object of the service, which includes material
products or various services [9].
The IO method regards the national economy as a huge economic system
composed of systems:
First of all, from a horizontal perspective, the national economy is composed of
various departments—goods production sector subsystems (e.g., industry, construction, etc.) and service production sector subsystems (e.g., transportation, life services,
finance, and insurance, etc.). Each of those subsystems is composed of several lower
level subsystems, and these subsystems can be further subdivided. Subsystems at the
same level are interdependent and restrict each other, and there are intricate horizontal
connections.
Second, from a vertical perspective, the national economy is composed of various
economic activity reproduction subsystems, and each subsystem can be decomposed
into more detailed subsystems. First of all, production, distribution, exchange, and
consumption are four subsystems where production is the starting point, consumption
is the endpoint, and distribution and exchange are the links connecting production and
consumption. Production determines consumption, and consumption again gives rise
to opportunities for reproduction, therefore, the national economy operate steadily
under this interaction. The national economic system has a clear goal: to continuously improve the level of material and technology, produce high-quality, largevolume products, and provide high-quality services to meet the increasing material
and cultural needs of the society and the people. The national economic system is
161
IO model. The IO model can be used to explore and analyze the interdependence
between industries in a region. When the final demand for certain sector changes, the
output value change of each industrial sector is estimated [41]. This model mathematically expresses the balance between production and distribution and use in various
sectors of the national economy, or the balance between production and consumption
in various sectors of the national economy, as reflected in the IO table, and establishes the corresponding IO After the mathematical model, the internal connection
between the various sectors of the national economy and the various links of social
reproduction can be revealed through computer operations.
3.2 The Features of IO Method
The IO analysis method is an economic quantitative analysis method that puts “input”
and “output” together for analysis and research. Generally speaking, “input” refers
to the consumption and use of various elements required by the industrial sector
in the production process, such as the consumption and use of material products,
the consumption and use of labor, and the consumption and acceptance of various
production resources or productive services, etc. [6, 39]. The input here includes
material production and labor activities. The “output” here refers to the distribution
and use of the production results of the industrial sector, that is, the physical movement of the material product or the object of the service, which includes material
products or various services [9].
The IO method regards the national economy as a huge economic system
composed of systems:
First of all, from a horizontal perspective, the national economy is composed of
various departments—goods production sector subsystems (e.g., industry, construction, etc.) and service production sector subsystems (e.g., transportation, life services,
finance, and insurance, etc.). Each of those subsystems is composed of several lower
level subsystems, and these subsystems can be further subdivided. Subsystems at the
same level are interdependent and restrict each other, and there are intricate horizontal
connections.
Second, from a vertical perspective, the national economy is composed of various
economic activity reproduction subsystems, and each subsystem can be decomposed
into more detailed subsystems. First of all, production, distribution, exchange, and
consumption are four subsystems where production is the starting point, consumption
is the endpoint, and distribution and exchange are the links connecting production and
consumption. Production determines consumption, and consumption again gives rise
to opportunities for reproduction, therefore, the national economy operate steadily
under this interaction. The national economic system has a clear goal: to continuously improve the level of material and technology, produce high-quality, largevolume products, and provide high-quality services to meet the increasing material
and cultural needs of the society and the people. The national economic system is