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The sectoral classifications in most research using SAM are very rough because of data limitations.
In reality, however, as can be surmised from recent empirical analyses using MRIO, it is no simple matter to build an input output LCA database with MRIO in which the system boundary is globally extended to encompass the detailed sectoral classifications readily available for LCA.
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This SAM differs from the existing 78-sector SAM in terms of its sectoral classification and especially the level of disaggregation of value-added and households account.
For sectoral classification, see Kuznets (1957).
The table also displays export shares in output, import shares in the domestic market (import penetration) and the sectoral classification according to their respective trade exposure.
Primary data sources for individual economies generally do not use the same sectoral classification schemes, in part for lack of coordination and also because not all economies produce all goods.
This change in sectors classification once the DWUC is introduced can be explained by the sectoral variation in water use efficiency.
The sectoral dummy (dsec) is used for simplification purposes to capture the effect of sectoral differences and has the value of one for a firm included in the particular sector classification, and zero otherwise.
Unfortunately, the broad level of the sector classification in our data does not allow us to distinguish between purely idiosyncratic shocks and aggregate or sectoral ones.
The third group consists of the industrial community embodied in the Chief Executive Officers (CEOs) of firms in the medium- and high-technology manufacturing sectors defined according to the UNIDO sectoral ISIC Rev.3 classification.
The results still hold when I introduce 12 sectoral dummy variables (ISTAT classification), a full set of dummy variables for the interaction of region and year to account for labor shocks of the labor market (column 4) and a description of relevant economic features of the province as of 1995 (the sectoral composition of value added and sectoral labor productivity).
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