Determinación de la capacidad antioxidante total por la técnica ABTS

A Social Accounting Matrix (SAM) is a matrix form representation of the micro economic and macroeconomic transactions record of a socio-economic system, which particularly capture the transfers and transactions among all agents in the economic system (Pyatt & Round, 1985); (Relnert & Roland-Holst, 1997). It is an exemplification of the National Accounts for a specific country, though it can be extensive to comprise multi-national accounting flows, and thus it is able to be constructed for whole regions or global context. SAM recognises all monetary flows from sources to recipients, within a disaggregated national account.

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Figure 4.6: Circular flow diagram of an economy

For well understanding, we can consider the circular flow diagram of an economy showed in figure#4.6 that captures all real transactions including all transfers among institutions and sectors. Production procedure is required to hire factors of productions such as capital, land, and labor inputs (with the rental/wages) from the factor markets, and from the commodity markets, it requires intermediate inputs to produce final goods and services. These domestically produced commodities are supplemented by imports of commodities. Thus completing the total amount of commodities that are sold through markets to the households, the investors, the government and the foreigners. Figure 4.6 explains the circular flow of the economic activities which shows that each institution‘s income becomes another institution‘s expenditure. For instance, the government and

Factor income

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households transfer income to the producers by purchasing the commodities. Yet again producers use this income to carry on further production activities. Also, further inter-institutional transactions, for example savings and taxes, ensure that the circular flow of incomes is a closed system. More specifically, all expenditure and income flows are accomplished, whether it is domestic or international transactions and there are no overflows from the system.

In figure 4.6, dotted arrow indicates government transfers to households. The dashed arrow indicates firm‘s income from selling the commodities. The dot and dashed arrow shows intermediate demands. The double dot and dashed arrow shows fiscal surplus of the government. For all solid arrows, the indicators are stated inside the diagram.

Likewise, a social accounting matrix (SAM) is also a framework that assigns numerical values to the expenditures and the incomes in the circular flow of economy. It is a matrix representation of the circular flow diagram with real monetary figure. SAM is a square matrix, meaning, number of rows must equal to the number of columns in which each column and row is denoted as an ―account.‖ Table 4.1 shows a SAM of an economy that associates to the circular flow diagram in figure 4.6. Every single box in the diagram is considered as an account in the SAM. Each and every cell in the matrix signifies a monetary flow from a column account to a row account. For instance, the private consumption spending of the circular flow diagram indicates a flow of funds to the commodity markets from households. In the SAM, this value is represented by the commodity row and the household column. The total expenditure must equal to the total revenue for each and every account in the SAM (to satisfy the principle of double-entry accounting systems). Thus, for every account, column and row totals must be the same.

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Table 4.1 shows the general components of a SAM. The SAM differentiates between the ―commodities‖ and the ―activities‖. The activities are the entities that produce goods and services for an economy while commodities are those goods and services produced by activities. They are differentiated for the reason that, an activity is able to produce more than one type of commodity (by-products). Likewise, a commodity can be produced by more than one type of activity. For instance, rice can be produced by large-scale or small farms. The monetary values in the activity accounts are typically calculated in producer prices which implies, factory gate or farm gate prices. Activities produce commodities (goods and services) by using the factors of production along with intermediate inputs. This fact is displayed in the activity column of the SAM, where each activity pays to the factors of production, i.e., the rents, wages and profits they generate during the production procedure (that is, value-added). Since it is a payment transferred from activities to factors, therefore, in the SAM, the value-added entry appears in the factor row and the activity column [Row 3-Column 1].

In the same way, the payment for intermediate demand is transferred from activities to commodities. [Row 2-Column 1]. Accumulation of value-added and intermediate demand is needed for gross output. The data on production mechanism included in the activity column is the input part of a usual ―input–output table,‖ which implies the required factor and the required intermediate inputs for per unit of output. Goods and services are either produced domestically and supplied domestically [Row 1-Column 2]

or imported from other countries [Row 7-Column 2]. For domestically produced commodities, indirect sales taxes are paid to the government while for imported commodities, import tariffs are paid to the government [Row 5-Column 2].

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Table 4.1: Fundamentals of a Standard SAM

Activities Commodit

As mentioned earlier, activities purchases commodities for using it as intermediate inputs for the production process [Row 2-Column 1]. However, final demand for each commodity consists of household consumption expenditure for that commodity [Row 2-Column 4], government expenditure (recurrent) [Row 2-2-Column 5], investment or gross capital formation [Row Column 6], and export demand of that commodity [Row 2-Column 7]. The SAM in Table 4.1 shows only single commodity and activity rows and columns.

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However, a SAM usually comprises of a number of various commodities and activities. For example, in our study we have 15 different activities and commodities based on our study focus. As our main focus is on the agricultural sector of Malaysia, we disaggregated the SAM into 10 different agricultural sectors and 5 other sectors.

Households are usually the ultimate owners of the factors of production, and therefore, they receive the incomes earned by the factors during the production procedures [Row 4-Column 3]. Also, they receive transfer payments (TP) from the government [Row 4-Column 5] (for instance, pensions and social security) and from the rest of the world (ROW), they receive the remittances from foreign workers [Row 4-Column 7]. On the other hand, households pay direct and indirect taxes to the government [Row 5-Column 4] and households purchase commodities to consume [Row 2-Column 4]. The surplus income (if positive) will be saved or dissaving (if expenditure is higher than income) [Row 6-Column 4]. The data for household accounts is typically collected from the national accounts and household income and expenditure surveys from the country‘s bureau of statistics.

From the ROW, the government receives transfer payments (TP) in a form of foreign grants and development assistance [Row 5-Column 7]. Total government revenues thus consist of income from all type of taxes and TP from ROW. Now in the expenditure side, the government pays for recurrent consumption expenditure [Row 2-Column 5]

and transfer payments to the households [Row 4-Column 5]. The gap between total revenues (TR) and total expenditures (TE) is the fiscal surplus (or fiscal deficit, if expenditure is higher than revenue) [Row 6-Column 5]. Information about the government accounts are normally available from public-sector budgets published by a country‘s Ministry of Finance.

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In keeping with the concepts of ex-post accounting identity, the total investment or gross capital formation (including changes in inventories or stocks) must be equal to the total savings. The total capital inflows (from aboard) is the difference between the total investment demands and the total domestic savings and is referred to as the current account balance [Row 6-Column 7]. Information on the current account (or rest of world) is drawn from the balance of payments, which is generally published by a country‘s central bank.