Leontief Inverse Matrix

This Model Table function represents the table format of the Leontief Inverse Matrix. It shows connections and interdependencies between sectors and countries/regions. The coefficients of the Leontief Inverse Matrix are a measure of how production in the different sectors spill over to other countries/regions and sectors creating demand in these other sectors by requiring input from them. Hence, considering all the linkages between different sectors, the Leontief Inverse Matrix reflects how intermediate demands for products and services in different countries/regions and sectors are influenced by a change in final demand. Consequently, it can be leveraged for holistic impact calculations of the value chain upstream part. The coefficients of the Leontief Inverse Matrix are derived from the Technology Matrix.

The function defines the following fields:

• Data Year: You use this field to specify the year of the data entry.

• Country/Region: You use this field to specify the country/region of business.

• Sector: You use this field to specify the economic sector of business.

• Partner Country/Region: You use this field to specify the country/region of the business partner.

• Partner Sector: You use this field to specify the economic sector of the business partner.

• Matrix Entry: You use this field as a key figure used to store the coefficients from the Leontief Inverse Matrix. The value gives information about the magnitude of the connection between the region-sector combination to the partner region-partner sector combination. More precisely, the higher the value, the higher the impact of a change in the demand for products fabricated in the specified region and sector on the production in the specified partner region and partner sector. This is because the goods from the partner region-partner sector combination are needed as input for the production in the region-sector combination.