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A 2012 Social Accounting Matrix (SAM) for Bhutan with a detailed representation of the agricultural sector (Technical Documentation)

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  • Feuerbacher, Arndt
  • Dukpa, Chencho
  • Grethe, Harald

Abstract

This paper develops a 2012 Social Accounting Matrix (SAM) for Bhutan with a detailed representation of the agricultural sector. Given the availability of extensive household, labour force and agricultural survey data as well as a large dataset of audited company reports, a bottom-up approach is applied to estimate the 2012 SAM, including the estimation of 2012 supply and use matrices. In case of missing data, the SAM relies on information from Bhutan’s 2007 supply and use table. The bottom-up approach allows for a detailed depiction of economic activities and their interlinkages with markets and institutions. The SAM consists of a total of 221 accounts, including 108 commodity, 52 activities, 31 factor and 16 household accounts. There are 14 agricultural and 5 postharvest activities producing 48 agricultural commodities. Agricultural commodities are differentiated by marketed and home-produced-home-consumed (HPHC) commodities to account for the large prevalence of subsistence farming in Bhutan and the differences in prices due to transportation and trade margins. Important features of farming systems and rural livelihoods in Bhutan such as the role of manure, bullock draught power, crop residues, community forestry and brewing of ara, a widely consumed local alcoholic beverage made of cereals, are depicted. Given the increasing importance of hydropower generation within Bhutan’s economy, the SAM also represents significant level of detail of the electricity generation sector and the input structure of energy intensive industries. The final SAM is estimated using an information-theoretic, cross-entropy approach. Taking a Bayesian perspective, uncertainties of cell entries’ prior values are set such that they reflect the availability and quality of data sources.

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  • Feuerbacher, Arndt & Dukpa, Chencho & Grethe, Harald, 2017. "A 2012 Social Accounting Matrix (SAM) for Bhutan with a detailed representation of the agricultural sector (Technical Documentation)," Working Paper Series 272932, Humboldt University Berlin, Department of Agricultural Economics.
    • Handle: RePEc:ags:huiawp:272932
    DOI: 10.22004/ag.econ.272932
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    References listed on IDEAS

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    1. Jayne, T. S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David & Benfica, Rui & Chapoto, Antony & Zulu, Ballard, 2003. "Smallholder income and land distribution in Africa: implications for poverty reduction strategies," Food Policy, Elsevier, vol. 28(3), pages 253-275, June.
    2. Sherman Robinson & Andrea Cattaneo & Moataz El-Said, 2001. "Updating and Estimating a Social Accounting Matrix Using Cross Entropy Methods," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 47-64.
    3. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    4. Feuerbacher, Arndt & Siebold, Matthias & Chhetri, Ashit & Lippert, Christian & Sander, Klas, 2016. "Increasing forest utilization within Bhutan's forest conservation framework: The economic benefits of charcoal production," Forest Policy and Economics, Elsevier, vol. 73(C), pages 99-111.
    5. Pyatt, Graham, 1988. "A SAM approach to modeling," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 327-352.
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    Cited by:

    1. Feuerbacher, Arndt & Rai, Arun & Lofgren, Hans & Sander, Klas & Grethe, Harald, 2021. "Policies to reconcile forest conservation and rural development: A pathway to bridge the forest transition in Bhutan?," Land Use Policy, Elsevier, vol. 109(C).
    2. Feuerbacher, Arndt & McDonald, Scott & Thierfelder, Karen, 2020. "Peasant Households and Pandemic Viral Diseases," MPRA Paper 100867, University Library of Munich, Germany.

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