Measuring Economic Growth and Productivity

12.2. Framework

We start with a basic description of our framework. Fig. 12.1 provides the Isard-type BIOT. Entries of the table are in nominal values but shown here as price times volume to emphasize how this relates to the price accounting model that we present below. Our BIOT separately identifies the imports from six exogenous economies: China, Germany, Korea, Malaysia, Taiwan, and Thailand, and the rest of the world (ROW). In the Isard-type (noncompetitive import-type IOT) framework (Isard, 1951), all purchases in Japan and the United States from foreign countries are recorded separately from the purchases of domestically produced goods and services. The areas surrounded by dotted squares in Fig. 12.1 represent imports to Japan and the ...