What is the relationship between Input-Output Table and National Accounts?
Input-Output Table is composed of intermediate inputs, primary inputs, and final demand.
Intermediate inputs, which are the main structure of Input-Output Table, express the sources and distributions of the various goods and services and show the interrelationships between industries with regard to production technology in the economy.
Primary inputs including compensation, operating surplus, consumption of fixed capital, and net indirect taxes constitute GDP by the income approach. And primary inputs of industries are the contribution to national income and components of GDP by the production approach.
Final demand includes household consumption, government consumption, fixed capital formation, change in inventories, and exports. It expresses the structure of exports and demand for goods and services from the consumption and investment sectors; if deducting imports, it consequently represents GDP assessed from the expenditure approach.
Input-output table combines production, income, and expenditure of GDP in the same table, allowing the analysis of each industry's production inputs and outputs distribution, providing the interrelationship between each account, and facilitating the improvement of the quality on national accounts statistics.