The Second Phase Input-Output Analysis Of China

Input-Output theory was founded by Wassily W. Leontief and it has been developed for more than seventy years. The compilation techniques of input-output table and its analysis techniques are improved continuous, and the input-output techniques have been widely popularized and applied in the world, which brings significant social and economic benefits.For the further development of input-output analysis of China, and to structuralize the Keynes investment multiplicator and the final net-production multiplicator, Prof. Liu Qiyun from Renmin University of China presents"The second phase input-output analysis technique". At present, this technique has still been studied as a methodology and never been applied to analyze the real economic problem.Utilizing the second input-output analysis technique, this paper analyzes the relationship between economic structure and economic growth of China 2002. Firstly, according the this technique, this paper raises the method in detail of how to make up the second phase input-output table and according the economic data of China 2002, this paper makes up two tables, respectively for the structural Keynes investment multiplicator model and the final net-production multiplicator model. At the same time, we discusses some problems we met in the process of table making up. Further more, according the data in the second phase input-output table, this paper calculates the matrixes of direct consumption coefficient, complete consumption coefficient (investment coefficient), direct investment coefficient and complete investment coefficient (consumption coefficient) on the foundation of which this paper models the structural Keynes investment multiplicator model and the final net-production multiplicator model. With these two model, this paper analyzes how the consumption structure and investment structure influent the economic growth in China 2002, furthermore, unveils the relationship between the investment and consumption of every single industry and the economic growth. Lastly, according the analysis above, this paper presents the conclusions and suggestions about the economic structure of China 2002 and the research of the second phase input-output technique.