The Input-Output Analysis Of Beijing's Finance And Insurance Industry

The analysis of Input-Output, also known as inter-sectoral balance method, is an effective method of quantitative analysis in economy. It was raised by the famous American economist, Wassily Ti Mufti, in 1936. It can reflect the relationship of all sectors (inter-industry)in the economic system, on the basis of the preparation of input-output tables and the establishment of the corresponding mathematical model. In China, it was studied a littlle later, but spreaded rapidly, and had various species of model, with a lot of participants.It had distinct Chinese characteristics.In the the study area of input-output method, China's Chen Xikang, Liu Qiyun, Tong Yancheng did a lot of work. With the sophisticating of input-output techniques, the articles using input-output analysis method to analyze the relationship between the various departments and the relationship between the various industries appeared in large numbers. But at present, few people involved in the analysis of the input-output structure and the industry economic power of the finance and insurance industry in Beijing, using the input-output method.This text analyses the input-output structure of the financial insurance industry in Beijing according to the input-output data of Beijing in 2002 and 2005.1. The input-output analysis of financial insurance industry in Beijing1)The analysis of the input structureIn 2005, the total input of Beijing's financial insurance industry is 114.282 billion yuan. The consumption of the 42 industry departments' intermediate use was 30.62 billion yuan, which accounted for 73.21% of the total.The newly created added value was 83.662 billion yuan, which accounted for 73.21% of and was in the front rank of all sectors.2) The analysis of the output structure In 2005, the total output of the finance and insurance industry was 114.28 billion yuan. The intermediate use for the 42 industry departments was 68.82 billion yuan, accounting for 60.22%.The finial use was 48.136 billion yuan, accouting for 42.12%.3)The analysis of industry correlationInfluence coefficient reflects the influence degree of the other industry departments'production demand when some industry department increase one unit terminal use. In 2005, Beijing's finance and insurance industry's influence coefficient was 0.35, lower than average level, and ranked 40 of the 42 industry sector.Sensitivity coefficient reflects the influence degree of some industry departments'production demand when the other industry department increase one unit intermediate use. In 2005, Beijing's finance and insurance industry's sensitivity coefficient was 1.27, higher than average level, and ranked 11 of the 42 industry sector.2. The measurement of the financial and insurance industry department's economic strengthIndustry department's economic strength is a comprehensive defination that includes industrial scale,output efficiency,products share,industry correlation and other aspects. It is involved not only in the industry department's effect on each tache of social reproduction, but also the value structure, economic efficiency, economic and technological relation with the other departments and so on of the production process of itself. This paper selects the following 10 indicators:the proportion of added value, gross output ratio, added value ratio, tax capacity, surplus capacity, intermediate consumption share, outflow share, industry influence coefficient, industry sensitivity coefficient. With these indicators, we use SPSS software to do principal component analysis, factor analysis, cluster analysis. According to the analysis results, it measures industry economic power of financial insurance industry in Beijing and puts forward rationalization suggestion to develop the finance and insurance industry in Beijing.