Propagation effects of taxes in Romania: An input-output analysis

The Input-Output model (IO) is an important tool of economic analysis, providing a predictive analysis framework for economic changes, if properly used. In developing measures, strategies, etc. at macro level it is important to identify the links that occur between branches of the economy for a better understanding of “enabler” branches which have the highest contribution to output creation. In this research the IO method was used to analyze effects of taxes within the Romanian economy, based on data provided by the National Institute of Statistics (NIS), using IO statistical tables for 2000 and 2006.