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Local suppliers have "far more correlation between output and wages," says Arun Warey, VIP's chief executive.
The gap between output and jobs can be explained by labour hoarding.
The VAR captures the potential interaction effects between output, government spending and revenue.
Proportional relationships and linear fit are found between output signal and applied pressure.
This imbalance between output and sales has led to theories that the business cycle is caused by overproduction or underconsumption.
Even the relationship between output and inflation, they argue, is understood "quite poorly, especially at low rates of inflation".
Concern has grown over a break in the rough historical relationship between output and employment known as Okun's Law.
The gap between output and capacity has narrowed, and the current-account deficit has widened to 10% of GDP.
The 21% gap between output per hour now and where it would have been had it remained on its pre-2007 path is never going to be closed.
This looks like the familiar distinction between output standards and command-and-control regulation, with economists arguing for the superiority of the former on efficiency grounds.
The results from panel error correction model reveal that there is evidence of a bidirectional causality between output and exports and between output and imports in both the short and long-run.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com