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The goal of this paper is to carry out the comparative dynamic analysis of value added as part of gross output created by the industry A01 (Crop and animal production, hunting and related service activities) in the Baltic States and Finland in the period of 2000-2014. The empirical material of the study is the National InputOutput Tables for the Period 2000-2014 available on the World Input-Output Database with its unified structured statistical information in monetary terms. The main theoretical tool is the original version of the Input-Output model created by the authors that allows to calculate and interpret the interindustry coefficients, Leontief inverse, allocation coefficients, Ghosh inverse. The time series of value added as part of gross output in the industry A01 are investigated. Although this indicator decreases in all examined countries, the comparative approach allows us to identify sufficient differences in the industry’s A01 value added formation in the respective countries. The Input-Output model allows us to provide holistic investigation of the industry’s A01 one monetary unit gross output production costs dynamics. The discussion part of the paper is devoted to identifying the most important reasons for differences in economic efficiency (in the sense of value added creation) of the industry A01 in the Baltic States and Finland. We define the objective and other reasons, which cause average cost increase in all examined countries. We also identify the differences in the structure of average cost vectors, which indicate historically formed and existing technological differences in A01 economy.

engineering for rural development

Comparative dynamic analysis of value added created by industry "crop and animal production, Hunting and related service activities" in the Baltic States and Finland