The size of the tradable and non-tradable sectors: Evidence from input–output tables for 25 countries

We compute the tradable and non-tradable input shares for consumption and investment from the latest release of OECD input–output tables. We document that input shares (the content of tradable and non-tradable goods per unit of final demand) differ substantially from final demand shares (the amount of tradable and non-tradable goods directly demanded for consumption or investment purposes). The deviation is especially large for investment expenditures. Non-tradable share estimates are essential to correctly parameterize multi-sector DSGE open economy models.