Construction of the Regional Input-Output Tables of the Czech Republic

National statistical offices are obliged to construct input-output tables of the national economy every 5 years. These tables show all the detailed flows in the economy intermediate consumption between companies, production, gross value added, household consumption, government consumption, export, import, compensation of employees (wages, salaries and subsidies) etc. in the product (CPA) or the industry (NACE) classification. Even if these national tables show highly detailed data the regional input-output tables offer interesting and valuable data as well. However, their compilation is very complicated that is why they are not compiled by the official statistics and they are not used widely. This paper demonstrates how regional input-output tables can be compiled and used for regions of the Czech Republic. Czech regional input-output tables are product by product tables with 82 rows and columns and they are prepared for all 14 regions (NUTS 3) of the Czech Republic. These tables represent the combination of information contain in officially published regional accounts and national symmetric input-output tables. The representative year is 2011 as this is the year of the last published national input-output tables. Even the main parts of the methodology are depicted in the literature, if preparing real estimates lots of practical obstacles occur. The key issue of construction of the regional input-output tables lies in the definition of statistical unit and its decomposition between regions. For the compilation of the regional input-output tables the definition of the local kind-of-activity unit is crucial. In practise, the Czech Statistical Office mainly reports institutional unit and therefore the availability of information about the local unit and the local kind-of-activity are very limited. When the local kind-of-activity units are correctly defined, then the problem would lie in the division of intercompany sales (e.g. energy industry - headquarter is located in the capital city and the power plants are located in different regions). Subsequent issue represents several conventions given by the European System of Accounts. The results given in the paper are based on the ESA 1995 methodology as the first part of the compilation was prepared in the period when the Czech Statistical Office published only data based on this standard. However, there are no crucial differences between ESA 1995 and currently used ESA 2010 methodology. This paper describes the compilation of the regional input-output tables in the specific region of the Czech Republic and shows the possibilities of using such tables for the macroeconomic modelling.