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Exact(4)
Second, the lowest participation in the distribution of value added corresponds to the compensations to labor in Mexico.
One difference is the interregional distribution of value added of industry, or the rewards of labor and the operational surpluses of capital.
For the latter the WIOD socioeconomic statistics5 were used and also, from these data, estimations of the distribution of value added between compensations to capital, labor and labor by skill levels, were performed.
As for the distribution of value added as capital and labor payments, it can be observed that the most significant gap is the one between labor compensation paid on the USA and the compensations paid in Mexico, as a proportion of the total value of trade in NAFTA.
Similar(56)
Therefore, SAM clarifies actual economic circulation, including the distribution structure of value added, by constructing SAM with the above-mentioned three conditions.
Section 3 describes the method used in the estimation of the account balances of trade flows between the NAFTA members in terms of value added, its distribution as payments to factors of production, and its employment content.
The method employed for the content of value added, its distribution, and the content of employment, in direct and indirect exports, between the NAFTA members follows the traditional input output analysis based on demand.
By using the World Input Output Database and the Input Output Analysis, this paper presents an estimate of the intra-NAFTA trade flows in terms of value added and its distribution among both labor and capital; labor by skill level; and content of persons engaged.
The distribution of the simulated injection among the sectors in the SAM follows that of value added on the sectors under focus.
Table 6 Composition of value added (percentages).
% of value added in tradable sectors Eurostat Gross value added in agriculture and manufacturing over total gross value added.
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