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How a Global Inter-Country Input-output Table with a Processing Trade Account Can Be Constructed from GTAP Database

Author

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  • Tsigas, Marinos
  • Wang, Zhi
  • Gehlhar, Mark

Abstract

We developed a method to construct a global ICIO table from version 8 GTAP database as well as detailed trade data from UN COMTRADE, and two additional IO tables for major emerging economies where processing exports are a large portion of their external trade. We integrate the GTAP database and the additional information with a quadratic mathematical programming model that (a) minimizes the deviation of the resulting new data set from the original GTAP data, (b) ensures that supply and use balance for each sector and every country, and (c) keeps all sectoral bilateral trade flows in the GTAP database constant. Bilateral and aggregate reliability indexes are computed for each GTAP sectors and end use categories which are used to control the relative amount of adjustment for each end-use categories within each original bilateral trade flows from the GTAP database. The new database covers 63 countries/regions and 41 sectors for 2004 and 2007 two years.

Suggested Citation

  • Tsigas, Marinos & Wang, Zhi & Gehlhar, Mark, 2012. "How a Global Inter-Country Input-output Table with a Processing Trade Account Can Be Constructed from GTAP Database," Conference papers 332205, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332205
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    References listed on IDEAS

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    1. Gehlhar, Mark J., 1996. "Reconciling Bilateral Trade Data For Use In Gtap," Technical Papers 28714, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Gehlhar, Mark, 1996. "Reconciling Bilateral Trade Data for Use in GTAP," GTAP Technical Papers 313, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    3. Patrick Canning & Zhi Wang, 2005. "A Flexible Mathematical Programming Model to Estimate Interregional Input–Output Accounts," Journal of Regional Science, Wiley Blackwell, vol. 45(3), pages 539-563, August.
    4. Ferrantino, Michael J. & Wang, Zhi, 2008. "Accounting for discrepancies in bilateral trade: The case of China, Hong Kong, and the United States," China Economic Review, Elsevier, vol. 19(3), pages 502-520, September.
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