The new methodology for measuring and analyzing the productive sectors in the Valencian Community and their interrelationships with the rest of the regions

The purpose of this report is to analyze the production specialization of the economy of the Valencian Community, combining two complementary approaches. On the one hand, the study quantifies the industry distribution of production, GVA and employment, using the most recent data available, which relates to 2016 and is highly disaggregated by productive business sector. On the other, it analyzes the intensity of trade interrelationships through Valencian firms’ purchases and sales of intermediate goods, distinguishing between transactions with other Valencian firms and transactions with companies in other Spanish regions.  This second approach is new, as it uses the Spanish Tax Agency’s database of Valencian firms’ input and output VAT as its source of information. This study is a very valuable tool for acquiring information about part of the value chain of the different sectors of the Valencian economy and the activities that have the greatest pull or push potential, which can help in designing appropriate lines of economic policy.