I am working on a project that will include automobile manufacturing. Looking at the the expenditure pattern for 340, I see that Wholesale automobile parts are a large component (11%) of intermediate expenditures.
Since the wholesale parts sector is only comprised of those expenditures pertaining to the wholesaling activity and not the production of the parts themselves, how does the model account for the impact of manufacturing those parts?
Hi James,
Great question, and you are exactly right, the 11% going to motor vehicle and parts wholesale industry does not include the value of the goods wholesaled. These good themselves, such as 3352 Other motor vehicle parts, 3347 Motor vehicle gasoline engines and engine parts, 3349 Motor vehicle transmission and power train parts, etc. are included as separate line items in the the spending pattern for the automobile manufacturing industry. About 12% of intermediate expenditures are allocated to Other motor vehicle parts, for example, and this includes just the value of the parts themselves.
Thank you,
Maria
Please sign in to leave a comment.
Comments
1 comment