Input-Output Analysis in International Economics

2024/2025

Academic Year

ENG

Instruction in English

4

ECTS credits

Delivered at:

School of World Economy

Course type:

Elective course

When:

4 year, 3 module

Instructor

Deseatnicov, Ivan

Course Syllabus

Abstract

This course deals with the theory of input-output analysis. The objective of the course is to introduce main modern aspects of input-output analysis to empower students with ideas and insights of how to address global economic issues. The course is essentially integrative, drawing on international economics and mathematics for economics courses to show how input-output tables can be used to analyze input-output linkages at the national and multi-regional level. We will pay particular attention to multi-country input-output tables, and their application to global value chain analysis. Classes will be a mixture of lecture and critical discussion of theory, and its application to practical problems.

Learning Objectives

• At the end of the course the student should be able to understand the structure, and work with input-output models,
• The students will be also aware of the advantages and limitations of these types of models.
• The students will be able to apply input-output theory to the analysis of the world economy

Expected Learning Outcomes

• Can apply input-output analysis for understanding world economy.
• Can calculate Basic measures from OECD Inter-Country Input-Output (ICIO) database. Value added content of gross exports and imports. Decomposition of domestic value added in gross exports.
• Can calculate Final demand measures. Re-exported intermediate imports. Service value-added content.
• Can calculate TiVA indicators using World Input-Output Tables (WIOT) database.
• Can calculate Value added origin by source country and industry. Value added embodies in exports by final destination. Backward and forward participation in GVCs.

Course Contents

• Introduction. Review of linear algebra
• Foundations of Input–Output Analysis
• Input–Output Models at the Regional Level
• Supply-Side Models, Linkages, and Important Coefficients
• Introduction to Matlab programming
• Calculation of TiVA indicators using Matlab 1
• Calculation of TiVA indicators using Matlab 2
• Calculation of TiVA indicators using Matlab 3
• Practical application to world economy. Discussion of a scientific paper
• Practical application to world economy. Practical work
• Practical application to world economy. Final presentations.

Assessment Elements

• Classroom participation and attendance
• Final presentation
  Students should present their final reports by providing rationale for TiVA indicators selection, calculation process and findings.
• Final report
  Based on the knowledge and practical experience obtained students should select several TiVA indicators and compute them using World Input-Output Tables (WIOT). They should describe the concepts and calculation process. The report should be 3-5 pages. In addition, students should submit Matlab code that they used to calculate these indicators.

Interim Assessment

• 2024/2025 3rd module
  0.4 * Classroom participation and attendance + 0.3 * Final presentation + 0.3 * Final report

Bibliography

Recommended Core Bibliography

• Jacques, I. (2015). Mathematics for Economics and Business (Vol. 8th ed). Harlow: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419610

Recommended Additional Bibliography

• ITO Koji, Ivan DESEATNICOV, & FUKAO Kyoji. (2017). Japanese Plants’ Heterogeneity in Sales, Factor Inputs, and Participation in Global Value Chains. Discussion Papers. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.eti.dpaper.17117

Authors

• Desiatnikov IVAN Vasilevich