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

Author

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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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    1. Huff, Karen & Robert McDougall & Terrie Walmsley, 1999. "Contributing Input-Output Tables to the GTAP Data Base," GTAP Technical Papers 304, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
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    3. 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.
    4. Peterson, Everett, 2006. "GTAP-M: A GTAP Model and Data Base that Incorporates Domestic Margins," GTAP Technical Papers 2200, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    5. 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.
    Full references (including those not matched with items on IDEAS)

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