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Investigating Alternative Approaches To Harmonise Multi-Regional Input-Output Data

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  • Arne Geschke
  • Richard Wood
  • Keiichiro Kanemoto
  • Manfred Lenzen
  • Daniel Moran

Abstract

Over recent years a small number of global multi-regional input-output (MRIO) databases were developed to describe the entire global economy at high sector detail. We investigate the differences that arise out of applying different construction procedures for two global MRIO databases: The EXIOBASE database, developed as part of the EU FP6 & 7 programs and the Eora database developed at the University of Sydney. The procedures used in EXIOBASE involve a high degree of interrogation and adjustment throughout the construction of the data set, whilst the Eora MRIO relies on single-step mathematical programming techniques and high-performance computing. We unravel the effect of the different approaches taken to develop the databases by undertaking a number of combinatorial experiments in which we exchange parts of the construction process between the EXIOBASE and Eora build pipelines. We conclude that Eora's highly automated data reconciliation approach produces MRIO databases that are of comparable quality to those constructed with EXIOBASE's multi-step approach. However, the reliability and robustness of the resulting MRIO database largely depend on the level of detail and reliability of the underlying raw data.

Suggested Citation

  • Arne Geschke & Richard Wood & Keiichiro Kanemoto & Manfred Lenzen & Daniel Moran, 2014. "Investigating Alternative Approaches To Harmonise Multi-Regional Input-Output Data," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 354-385, September.
    • Handle: RePEc:taf:ecsysr:v:26:y:2014:i:3:p:354-385
    DOI: 10.1080/09535314.2014.937069
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