Input/Output Analysis—An Appraisal In The Context Of As Yet An Unfinished Experiment In Kenya

The paper discusses the relevance of input/output tables as a tool for economic analysis and planning in developing countries. It contends that this is so only to the extent that the input out‐put tables enable consistency of production accounts to be verified while providing a suitable basis for macro projections at the same time. As a by‐product, such input out put tables, the paper adds, also provide a convenient framework for estimating the needs for extensions and improvements in basic statistics. All these requirements, it is stated, can be fulfilled by a relatively aggregated format of an input/output table—which some of the developing countries are in a position to compile. However, the paper states, it is feared that the case for input/output analysis is not based on these requirements. The main force of arguments is in fact based on the uses of input/output tables for more detailed sectoral analysis and projections. The current state of basic statistics on some key sectors, it is stated, is not sufficiently sound to yield an end‐product which is reliable. In the case of sectors where this is so the input/output analysis is not relevant either because of concentration of production in a relatively few establishments or because of limited amount of inter‐sectoral interaction. It is further felt that if such arguments were to be accepted by developing countries the result would be a distorted disposition of statistical resources. Immediate needs of the developing countries require concentration of effort in development of more reliable and relevant series on basic statistics.