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The size of the tradable and non-tradable sectors: Evidence from input–output tables for 25 countries

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  • Lombardo, Giovanni
  • Ravenna, Federico

Abstract

We compute the tradable and non-tradable input shares for consumption and investment from the latest release of OECD input–output tables. We document that input shares (the content of tradable and non-tradable goods per unit of final demand) differ substantially from final demand shares (the amount of tradable and non-tradable goods directly demanded for consumption or investment purposes). The deviation is especially large for investment expenditures. Non-tradable share estimates are essential to correctly parameterize multi-sector DSGE open economy models.

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  • Lombardo, Giovanni & Ravenna, Federico, 2012. "The size of the tradable and non-tradable sectors: Evidence from input–output tables for 25 countries," Economics Letters, Elsevier, vol. 116(3), pages 558-561.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:558-561
    DOI: 10.1016/j.econlet.2012.05.047
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    More about this item

    Keywords

    International trade; Input–output tables; Non-tradable goods;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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