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Correcting the 'self-trade' issue in the GTAPAgg software - Technical paper

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  • Meriem Hamdi-Cherif

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Frédéric Ghersi

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

The successive versions of the GTAP databases are provided with GTAPAgg, a programme that computes values of the series of the database for any regional and sectoral aggregation. A 'self-trade' issue arises from the fact that GTAPAgg aggregates the several series concerned with international trade, like any other series, by simply summing them up : the resulting series include a share of exports and imports happening between the aggregated regions, which should rather be treated as economic flows internal to the region resulting from the aggregation process. This paper details a method that aims at solving this shortcoming, and discusses the importance of doing so. A first section puts the research question into context and discusses its likely importance when using GTAP as a calibration dataset for computable general equilibrium modelling. A second section details the analytics of the method proposed to correct the aggregation process, in the broader framework of a programme extending GTAPAgg to the production of national account matrixes in the standard United Nations format. An appendix provides the code of the extended aggregation programme developed.

Suggested Citation

  • Meriem Hamdi-Cherif & Frédéric Ghersi, 2012. "Correcting the 'self-trade' issue in the GTAPAgg software - Technical paper," CIRED Working Papers hal-00866558, HAL.
    • Handle: RePEc:hal:ciredw:hal-00866558
    Note: View the original document on HAL open archive server: https://hal.science/hal-00866558
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    References listed on IDEAS

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