Importing to produce (I2P) and to export (I2E) In ILIAS you can find the Excel file "io exercise" which contains aggregated input-output tables for Korea and Japan for the years 1995 and 2015 sourced from the ICIO tables of the OECD.

Note that the tables are written into different sheets of the Excel file and are denoted in millions of nominal USD. Each country comprises three sectors: primary (pri), manufacturing (mfc), and services. Final goods are separated into exports (e) which demand from consumers, firms for investment goods, and the government are summarized to a rest of final goods category (f).

(a) Complete the missing data in the IO tables

(b) Calculate the intermediate input-coefficient matrix (A) and the Leontief-inverse matrix using the completed IO tables. Which information do these two matrices give you?

(c) Calculate the vector of gross output (x) for all IO tables once with the help of the A-matrix and once with the help of the Leontief-inverse matrix. Are both approaches equivalent?

(d) Calculate the import to produce (I2P) and import to export (I2E) matrices as discussed in the lecture.

(e) Why do both measures differ?

(f) Can you find difference between the two countries and some explanation for that (hint: you might want to have a look into the paper of Baldwin and Lopez-Gonzales, 2015).

(g) Discuss important limitations of those two measures that come from the national IO tables you used to calculate them.