A description of the Prato’s economic system using a bi-ethnical social accounting matrix Stefano Rosignoli - IRPET Liabilities of native and immigrant entrepreneurs in globalization: The case of Prato Monash University Prato Center Prato, 4 December 2015 Workshop Monash University
Introduction This presentation will show the main structure of the papers and the power of a social accounting matrix as a descriptive tool of an economic system. Particularly I will show: 1. What are social accounting matrices (SAM) 2. Why they are important to describe economic systems 3. How are they built 4. How we consider the Chinese community into Prato SAM 5. What are Impact models based on SAM 6. Which is the contribute of Chinese community to the provincial economy measured by SAM-Based model 7. How SAM-based model can be used for cohesion policies evaluation Workshop Monash University
Relations between operators in an economic system The economic accounts have the aim to estimate economic flows between operators of an economic system in one year. Good and services Prices Households Pub. Adm. Enterprises Income Labor and Capital Rest of the world Workshop Monash University
Picture resolution Low resolution High resolution Map of Prato Map of Prato centre Workshop Monash University
Resolution of the economic system description Low resolution High resolution description of provincial descritpion of provincial economic system economic system Social accounting matrices Value added for 7 sectors Inter-sectoral Domestic 0.00 0.00 0.00 Exports 0.00 Investments 0.00 exchanges consumptions Agricolture 25 Domestic VA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Incoming VA Manifactures 1320 Resident Incoming tourism 0.00 0.00 0.00 0.00 0.00 0.00 0.00 consumptions expenditure Energy and water 227 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Balance of sectors 0.00 Primary Inter-sectoral current Incoming current 0.00 0.00 0.00 0.00 0.00 0.00 income transfers transfers Constructions 297 Balance of Imports 0.00 0.00 0.00 0.00 0.00 0.00 0.00 trade Market services 2993 Tourism Outgoing tourism 0.00 0.00 0.00 0.00 0.00 0.00 0.00 balance expenditure Inter-sectoral capital Incoming capital Non market services 670 0.00 0.00 0.00 0.00 Savings 0.00 0.00 transfers transfers Current Outgoing current Outgoing capital 0.00 Outgoing VA 0.00 account 0.00 0.00 0.00 transfers transfers Total 5711 balance Workshop Monash University
Economic accounts and Accounting matrices There are many types of accounting matrices, and they are useful for many targets Accounting matrices INPUT OUTPUT, SUT, NAMEA, SAM Estimation of Quantitative models Description of the regional and sub- for economic social economic regional economic analysis and structure of a territory accounts forcasting in one year Workshop Monash University
Bi-ethnical matrix Branches VA Consumption Balances Paid transfers Exports Incoming Capital Incoming tourism outflows income flows expenditure Inter- Production Domestic sectoral 0.00 0.00 0.00 Exports 0.00 Investments 0.00 branches consumptions exchanges Domestic VA and taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Incoming VA VA Incoming Domestic Resident 0.00 0.00 0.00 0.00 0.00 tourism 0.00 0.00 consumptions consumptions expenditure Balance of Balances 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 sectors Inter-sectoral Incoming Received Primary 0.00 0.00 0.00 current 0.00 0.00 0.00 current transfers income transfers transfers Balance of Imports Imports 0.00 0.00 0.00 0.00 0.00 0.00 0.00 trade Outgoing Outgoing Tourism tourism 0.00 0.00 0.00 tourism 0.00 0.00 0.00 0.00 balance expenditure expenditure Inter-sectoral Incoming Savings + capital 0.00 0.00 0.00 0.00 Savings 0.00 0.00 capital capital revenues transfers transfers Current Outgoing Outgoing Outgoing income Outgoing 0.00 0.00 account current 0.00 0.00 capital 0.00 flows VA balance transfers transfers Workshop Monash University
Bi-ethnical matrix Branches VA Consumption Balances Paid transfers Exports Incoming Capital Incoming tourism outflows income flows expenditure Private and public Inter- Production Domestic Enterprises Investments sectoral 0.00 0.00 0.00 Exports 0.00 Investments 0.00 branches consumptions expenditures exchanges Domestic VA and taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Incoming VA VA Incoming Domestic Resident 0.00 0.00 0.00 0.00 0.00 tourism 0.00 0.00 consumptions consumptions expenditure Rest of the world Balance of Distribution of Balance of Income redistribution Balances 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 sectors payment value added Inter-sectoral Incoming Received Primary 0.00 0.00 0.00 current 0.00 0.00 0.00 current transfers income transfers transfers Balance of Imports Imports 0.00 0.00 0.00 0.00 0.00 0.00 0.00 trade Outgoing Outgoing Tourism tourism 0.00 0.00 0.00 tourism 0.00 0.00 0.00 0.00 balance Capital expenditure expenditure Saving transfers Inter-sectoral Incoming Savings + capital 0.00 0.00 0.00 0.00 Savings 0.00 0.00 capital capital revenues transfers transfers Current Outgoing Outgoing Outgoing income Outgoing Rest of the world 0.00 0.00 account current 0.00 0.00 capital 0.00 flows VA balance transfers transfers Workshop Monash University
SAM building The SAM Building procedure needs information from many sources Administrative Econometric Surveys statistics estimates Matrix of non consistent estimates Balanced matrix: row totals=col totals And consistency with official statistics we use a balancing procedure to achieve consistency between economic flows Workshop Monash University
Extractions from bi-ethnical SAM GDP and main Disposable expenditure income and aggregates consumption by institutional sectors (Chinese Value added Inter- Domestic and not Chinese) sectoral 0.00 0.00 0.00 Exports 0.00 Investments 0.00 consumptions exchanges subdivided in Domestic VA 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Incoming VA 28 sectors and Incoming Resident 0.00 0.00 0.00 0.00 0.00 tourism 0.00 0.00 consumptions expenditure Balance of ethnic groups of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 sectors Incoming Primary Inter-sectoral 0.00 0.00 0.00 0.00 0.00 0.00 current income current transfers transfers enterprises Balance of Imports 0.00 0.00 0.00 0.00 0.00 0.00 0.00 trade Outgoing Tourism 0.00 0.00 0.00 tourism 0.00 0.00 0.00 0.00 balance expenditure Incoming Inter-sectoral 0.00 0.00 0.00 0.00 Savings 0.00 0.00 capital capital transfers transfers Current Outgoing Outgoing current Outgoing capital 0.00 0.00 account 0.00 0.00 0.00 VA transfers transfers balance Taxes and contributions by Balance of payment institutional sectors paid by between Prato province (Chinese and not Chinese ) and the rest of the world households Workshop Monash University
SAM Flows of the bi-ethnical economy Final demand of goods and services Chinese Rest of community economy From final demand of good Household consumption 173 3.117 and services to production to Public consumption 0 1.335 income distribution. Investiments 125 1.475 Regional exports 936 2.802 Foreign exports 767 1.378 Enterprises production Income distribution Chinese Rest of Chinese Rest of community economy community economy Enterprises(u) 4.850 24.547 Primary income 422 4.362 Units of labour(u) 17.600 80.700 Direct texes and contributions 111 1.970 Production 2.132 10.433 Disposable income 184 3.250 Value added 669 5.042 Soruces: ProvincialSAM estimates Workshop Monash University
Contribute of Chinese community to the Prato economy Share of Chinese community contribute to the total flows of the Provincial SAM: Gdp and main aggregates Totals Chinese contribute Gross domestic product 6,299 11.2% Private consumption 3,326 5.2% Investments 1,599 7.8% Exports 5900 36.1% Sectorial value added Totals Chinese contribute Agricolture 25 0.0% Textiles, apparel and leather industries 951 50.8% Other manifactures 597 3.7% Constructions 297 0.7% Trade, transportations, accomoodation 1165 9.4% Other services 2680 2.0% Total value added 5711 11.7% Source: SAM estimates Workshop Monash University
SAM Based Model Relations of bi-ethnic SAM Based model Exogenous variables Enterprises Household consumption Households Public Public expenditure administration Investments Regional Exports Gross value Income Foreign Exports added redistribution Rest of world Outcome variables Units of labour outcome subdivided by institutional Gdp and import sectors with households and enterprises Value added by sectors divided by Chinese and not Chinese Taxes and contributes Disposable income Workshop Monash University
Impact model From the matrix to the impact model (demand driven) The contribute rises thanks to the relations of chinese community and the rest of the economy Indirect activation due Overall direct, indirect Direct contribute of to intermediate and and induced effect due value added from = + final demand of the to the Chinese chinese enterprises chinese community community to the (Enterprises and provincial economy. Households) Workshop Monash University
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