IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Sectoral interdependences and cost structure in the Belgian economy : an application for input-output tables

Listed author(s):
  • D. Cornille

    (National Bank of Belgium, Research Department)

  • B. Robert

    (National Bank of Belgium, Research Department)

Registered author(s):

    Input-output tables (IOT) offer a comprehensive view of an economy, describing supply and demand flows according to activity branches, including flows between these branches, i.e. intermediate consumption. Based on the latest published IOT, i.e. over the year 2000, this article develops the so-called cumulative approach, which delivers a global view of the effects of the economic activity of a given branch on others and on the economy as a whole. More specifically, the nature of relationships between branches, the peculiarities regarding the degree of openness and the production process of the Belgian economy, and the cost structure are illustrated in turn. Indirect effects vary significantly among branches, as they are a function of the importance of domestic intermediate consumption in the production process. Generally speaking, business sector services are an important beneficiary of indirect effects from all branches, especially, and increasingly, from industry as a result of outsourcing. Industrial activity presents fewer spill over effects in Belgium than in other European countries, as a result of higher leak effects through imports. As opposed to this, indirect effects of business sector services activity are stronger than elsewhere, due to important business activities outsourcing in these branches also. From 1995 to 2000, the cumulative intermediate import content of Belgian output has raised to the expense of value added, which, aside from a price effect, also indicates an increasing reliance on imports. Intermediate import dependency, which is larger in Belgium, mainly takes the form of industrial products, but is also more important than elsewhere for business sector services. While import dependency looms heavy for exports, it is also large for households’ consumption. In terms of cost structure, wages represent globally more than a third of total production. However, the share of wages amounts to about a quarter of the total costs related to households consumption recorded in the HICP, while the share of indirect taxes is 17 p.c.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by National Bank of Belgium in its journal Economic Review.

    Volume (Year): (2005)
    Issue (Month): ii (June)
    Pages: 33-48

    in new window

    Handle: RePEc:nbb:ecrart:y:2005:m:june:i:ii:p:33-48
    Contact details of provider: Postal:
    Boulevard de Berlaimont 14, B-1000 Bruxelles

    Phone: (+ 32) (0) 2 221 25 34
    Fax: (+ 32) (0) 2 221 31 62
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:nbb:ecrart:y:2005:m:june:i:ii:p:33-48. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.