SETP No. 14 The Economic Value of Incremental Employment in the ...
SETP No. 14 The Economic Value of Incremental Employment in the ...
SETP No. 14 The Economic Value of Incremental Employment in the ...
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5.16 <strong>The</strong> personal <strong>in</strong>come tax and company tax multipliers are derived <strong>in</strong> a similar<br />
fashion to <strong>the</strong> employment and capital multipliers while <strong>the</strong> <strong>in</strong>direct tax multiplier<br />
is obta<strong>in</strong>ed <strong>in</strong> a similar manner to that obta<strong>in</strong>ed for household <strong>in</strong>come.<br />
5.17 Kuhn & Jansen (1997) derived sectoral multipliers for South Africa on a detailed<br />
sectoral basis for <strong>the</strong> follow<strong>in</strong>g economic variables:<br />
Gross domestic product;<br />
<strong>Employment</strong>;<br />
Household <strong>in</strong>come;<br />
Personal <strong>in</strong>come tax;<br />
Company tax;<br />
Imports;<br />
Capital;<br />
Indirect taxes, and<br />
Operat<strong>in</strong>g surplus.<br />
5.18 Table 5.1 shows an aggregated Gross Domestic Product multiplier table as<br />
derived by Kuhn and Jansen (1997).<br />
Table 5-1<br />
Sectoral GDP Multipliers for 1993 Ow<strong>in</strong>g to a R1 Change <strong>in</strong> Demand for<br />
<strong>the</strong> Sectors Product or Service (Source: Kuhn & Jansen, 1997).<br />
<strong>Economic</strong><br />
sector<br />
Initial<br />
impact<br />
First<br />
round<br />
impact<br />
Direct<br />
impact<br />
Indirect<br />
impact<br />
Induced<br />
impact<br />
Total<br />
impact<br />
A B C=(A+B) D E (C+D+E)<br />
Agriculture 0.51366 0.19258 0.70623 0.19121 0.43634 1.3338<br />
M<strong>in</strong><strong>in</strong>g 0.63303 0.13222 0.76525 0.13363 0.60303 1.5019<br />
Manufactur<strong>in</strong>g 0.34445 0.23830 0.58275 0.22025 0.57067 1.3737<br />
Electricity 0.53458 0.23133 0.76591 0.17454 0.44684 1.3873<br />
Construction 0.32802 0.25305 0.58107 0.27286 0.74308 1.5970<br />
Trade 0.55919 0.22229 0.78<strong>14</strong>9 0.15024 0.76049 1.6922<br />
Transport 0.59641 0.18119 0.77760 0.<strong>14</strong>379 0.68226 1.6037<br />
F<strong>in</strong>ance 0.71034 0.16486 0.87520 0.08804 0.56567 1.5289<br />
O<strong>the</strong>r 0.38564 0.28437 0.67000 0.2<strong>14</strong>26 0.711<strong>14</strong> 1.5954<br />
Total economy 0.5178 0.17940 0.69720 0.17600 0.5896 1.4627<br />
5.19 <strong>The</strong> model consists <strong>of</strong> an <strong>in</strong>put table, several multiplier tables and an output table.<br />
Figure 5.1 shows a schematic <strong>of</strong> <strong>the</strong> mechanics <strong>of</strong> <strong>the</strong> model. <strong>The</strong> <strong>in</strong>put table<br />
presents <strong>the</strong> rand value associated with each component to <strong>the</strong> multiplier table.<br />
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