ABSTRACT
Recently, the application of the input-output (I-O) approach at the regional level has been promoted heavily in China. Shanxi Province pioneered the first regional I-O table in China, specifically carried out by the Statistical Bureau of Shanxi Province. The 1979 I-O table of Shanxi Province includes the physical input-output table (PIOT) of 88 products and the monetary input-output table (MIOT) of 56 sectors. This chapter examines the factors of the necessity of promotion and application of the I-O approach at the regional level. The promotion and application of the I-O approach are appreciated and prominently supported by governments at all levels. As advocated by the Central Committee of the CPC, one must learn to manage the economy by economic means. The objective of compiling the I-O table established by Shanxi Province was to serve construction of an energy and heavy chemical industries base.
