Download Chapter 6 Macroeconomic Data

Chapter 6
Macroeconomic Data
Angel H. Aguiar
This chapter provides an overview of the macroeconomic features of the GTAP 9 Data Base. We will
first present how the macroeconomic data base is collected and processed. Then, the section will
focus on highlighting the salient features of the uses of Gross Domestic Product in the construction of
the GTAP Data Base.
6.1
Data Sources and Processing
Our primary source of macroeconomic data is the World Development Indicators (WDI).1 This World
Bank data is a suitable source of data for GTAP since it covers a wide range of countries and includes
data that is already reconciled for statistical discrepancies. From the World Bank data base, we
obtained data on GDP, GDP aggregates (private consumption, government consumption, and gross
fixed capital formation), and population. The GDP and GDP aggregates data are in millions of current
US dollars. For some countries, GDP and population data were not available in WDI, for those
countries we compiled data from other sources such as the UN Statistics Division and the CIA World
Factbook among others.
The construction of the GTAP Data Base does not directly require data on exchange
rates. All the coefficients in the regional I-O tables are simply scaled up to match the GDP reference
year. Since most the GDP data comes from the World Bank’s data base, the underlying exchange rate
is the Atlas conversion factor 2 that is used by the World Bank in its national accounts data.
Estimates of the GDP aggregates were generated for the countries for which only GDP and
population data are available. This was done by first mapping the 244 countries with a smaller
number of 19 geographic regions. For each geographic region, the average share of each GDP
aggregate to total GDP was calculated for the countries for which GDP aggregates data are available.
Estimates of the GDP aggregates were then generated for the countries with no GDP aggregates data
by multiplying GDP of each country with the average share of the aggregate in the geographic
region to which the country belongs. The estimates for each GDP aggregate were then summed up
1
WDI reports calendar year data, for the methodology behind please refer to this document:
http://data.worldbank.org/sites/default/files/wdi-2013-backmatter.pdf
2
The Atlas conversion factor for any year is the average of a country’s exchange rate (or alternative conversion
factor) for that year and its exchange rates for the two preceding years, adjusted for the difference between the rate
of inflation in the country and, for 2001 onwards, that in countries including the Euro Zone, Japan, the United
Kingdom, and the United States. A country’s inflation rate is measured by the change in its GDP deflator
(http://www.worldbank.org/data/aboutdata/working-meth.html).
for each GTAP region after estimates have been generated for the data gaps. This practice is
based on the assumption that a country would have a similar macroeconomic profile to its
neighboring countries.
Since GTAP 6 Data Base, GDP aggregates (private consumption, gross fixed capital
formation, and government consumption) are scaled in order to maintain consistency of the
collected GDP data with the reconciled trade data (see Chapter 9). The reconciled trade data
do not match the total exports and imports in the World Bank dataset, therefore, if we do not
scale the GDP aggregates, the resulting final GDP will be different than that of World Bank’s GDP
totals.
Finally, we would like to highlight the fact that s i n c e Version 7, the GTAP Data Base
has released updates for the 2004 reference year. While some data remain the same, there are some
notable changes. The first major difference is the expansion of standard country set from 226 to 244
that occurred between version 7 and 8. The additional 18 regions are small countries (both in terms
of GDP and population) and are not countries for which we have IO tables. The second issue is that
additional regions change the composition of some of the GTAP composite regions, a fact we should
keep in mind when comparing version 7 against Versions 8 or 9. Third, for the remaining regions the
2004 base year data in Version 8 represents a substantial improvement to that of Version 7 data base.
For Version 7 we used World Bank data for 130 countries, leaving us to collect data from other sources
for the other 96 countries. For Versions 8 and 9, the WDI had both expanded its country coverage and
updated the 2004 macroeconomic data. As a result, we collected GDP data for 190 countries from
WDI and 54 from other sources.
For a few of the tiny countries/territories, GDP data is missing or zero, but population data is
available. For such countries, we assumed the per-capita GDP to be the average per-capita-GDP of the
corresponding geographical region to calculate the approximate GDP. For South Georgia and the
South Sandwich Islands and Heard and MacDonald Islands, there was no data on GDP or
population, so we assumed zero for these territories.
6.2
Uses of Macroeconomic Data
During the GTAP Data Base construction process, macroeconomic data are used in various stages. The
primary use of macroeconomic data is in updating the regional input-output (I-O) tables to a common
base year. As a first step, all the coefficients in the regional I-O tables, initially in national currency units,
are scaled-up by the ratio of gross domestic product (GDP) calculated from the I-O tables to external
GDP data in current US dollars. Then, data on GDP aggregates – private consumption (C), gross fixed
capital formation (I), and government consumption (G) are used in the FIT process to update the values of
these aggregates in the regional I-O tables (see Chapter 15.A).
Per capita GDP data are also required in the construction of input-output tables for
composite regions, i.e. the aggregate regions for which input-output data are generated based on the IO tables of the primary regions. Similar per capita GDP is used as a criterion for matching a member
country in a composite region to one of the primary regions within the same geographic area (See
Chapter 8.E). A combination of one or more primary region I-O tables is then used to generate an I-O
table for a composite region.
Macroeconomic data are also used in extending various data sets to the standard country
coverage and as weights for aggregating data from standard countries to GTAP regions.
Macroeconomic data, particularly GDP and GDP shares, are used in extending the trade datasets
(Chapter 9) to 244 standard countries in the GTAP 8 Data Base. GDP data are also used as
weights for aggregating data on domestic support, factor shares (Chapter 12.A), and labor
shares (Chapter 12.B) from standard countries to GTAP regions. Finally, macroeconomic
data, government consumption and GDP are used to check and potentially revise the share of
government consumption in each I-O table. This procedure imposes a more uniform
treatment of government consumption expenditure across countries and is explained in
greater detail in Chapter 8.E.
6.3
Capital Stock and Depreciation
The GTAP Data Base also reports data on physical capital stock and depreciation. Capital stock data was
collected from the Penn World Tables version 8.0.3
From the Penn World Tables we collect 167 countries for the three reference years in GTAP.
Similar to the procedure for filling data gaps in the GDP aggregates data, data gaps for capital stock
were filled by first calculating the average ratio of capital stock to GDP for the countries for
which capital stock data are available. Estimates of capital stock were then generated for the countries
with no capital stock data by multiplying GDP in each country with the average ratio of capital stock
to GDP in the geographic region to which the country belongs. The capital stock estimates were
then summed up for each region after estimates have been generated for the data gaps.
Capital depreciation is estimated at four percent of the physical capital stock for both base
years. The last two columns of Table 6.1 present capital stock and depreciation data in millions of
2011 US dollars, respectively for the 140 regions of the GTAP 9 Data Base.
3
http://www.rug.nl/research/ggdc/data/pwt/pwt-8.1
Table 6.1 Macroeconomic Data (2011 US$ Million)
Regions
Australia
New Zealand
Rest of Oceania
China
Hong Kong
Japan
Korea
Mongolia
Taiwan
Rest of East Asia
Brunei Darassalam
Cambodia
Indonesia
Lao People's Dem. Rep.
Malaysia
Philippines
Singapore
Thailand
Viet Nam
Rest of Southeast Asia
Bangladesh
India
Nepal
Pakistan
Sri Lanka
Rest of South Asia
Canada
United States of America
Mexico
Rest of North America
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
Paraguay
Peru
Uruguay
Venezuela
Rest of South America
Costa Rica
Guatemala
Honduras
Gross
Domestic
Product
Private
Consumption
1,387,013
163,841
44,376
7,321,875
248,516
5,905,634
1,202,462
8,761
464,009
52,323
16,691
12,830
845,925
8,254
289,260
224,095
274,065
345,670
135,540
56,480
111,906
1,880,100
18,850
213,686
59,178
21,874
1,778,628
15,533,784
1,170,083
8,199
557,727
23,949
2,476,695
251,162
335,416
76,770
25,071
170,564
47,237
316,482
11,835
41,237
47,655
17,710
746,730
96,624
31,099
2,658,237
157,718
3,523,851
634,293
4,147
249,715
23,760
4,713
10,879
486,797
5,967
148,338
175,355
107,310
197,975
108,191
35,658
84,650
1,171,620
16,432
188,064
43,429
22,211
980,349
10,887,626
762,745
5,415
361,820
16,101
1,485,873
152,149
204,447
47,229
19,432
102,593
33,141
188,471
6,950
23,653
39,886
12,276
Gross
Fixed
Capital
Formation
370,097
30,646
14,125
3,375,387
58,647
1,203,859
372,468
4,180
86,015
15,503
3,283
2,111
274,430
2,266
69,932
44,676
74,761
93,580
42,374
16,986
27,374
635,209
4,602
29,000
16,850
5,139
412,007
2,874,598
246,233
2,772
104,024
5,014
474,816
55,716
78,819
21,431
4,541
41,026
9,039
60,583
3,453
7,258
6,919
3,865
Government
Consumption
Capital
Stock
Depreciation
247,140
32,409
11,809
988,370
21,707
1,191,584
172,960
1,103
51,503
8,103
4,258
796
77,459
840
40,809
23,155
28,570
47,231
9,340
7,262
6,296
227,768
2,058
22,551
9,199
3,281
381,750
2,567,570
130,960
2,406
78,269
3,642
509,252
30,168
53,745
10,414
2,940
17,520
6,272
39,353
1,834
6,497
4,764
2,540
5,149,000
441,545
156,392
26,018,896
793,342
25,670,184
4,406,185
47,667
1,130,319
122,346
44,796
29,917
2,711,152
28,731
1,128,134
769,604
1,154,118
1,359,273
564,981
199,565
356,467
4,334,710
71,997
546,561
171,005
59,030
5,247,259
48,068,048
3,125,379
16,121
1,906,264
59,753
9,073,123
762,927
1,203,036
305,416
64,443
655,984
158,419
960,824
46,022
79,010
74,005
43,938
205,960
17,662
6,256
1,040,756
31,734
1,026,807
176,247
1,907
45,213
4,894
1,792
1,197
108,446
1,149
45,125
30,784
46,165
54,371
22,599
7,983
14,259
173,388
2,880
21,862
6,840
2,361
209,890
1,922,722
125,015
645
76,251
2,390
362,925
30,517
48,121
12,217
2,578
26,239
6,337
38,433
1,841
3,160
2,960
1,758
Regions
Gross
Domestic
Product
Private
Consumption
Nicaragua
Panama
El Salvador
Rest of Central America
Dominican Republic
Jamaica
Puerto Rico
Trinidad and Tobago
Caribbean
Austria
Belgium
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Slovakia
Slovenia
Spain
Sweden
United Kingdom
Switzerland
Norway
Rest of EFTA
Albania
Bulgaria
Belarus
Croatia
Romania
Russian Federation
Ukraine
9,898
33,270
23,139
1,489
55,433
14,434
100,353
23,676
109,228
415,983
513,316
24,851
216,060
333,743
22,543
262,378
2,777,492
3,628,099
289,886
137,451
226,034
2,196,334
28,480
43,083
58,009
9,302
832,751
515,771
237,888
95,877
50,250
1,454,530
535,997
2,462,479
658,867
490,812
20,126
12,891
53,543
59,734
61,521
182,611
1,904,795
163,422
8,002
32,540
21,566
865
47,440
12,285
78,758
9,151
69,329
235,230
297,907
18,665
109,450
163,285
13,176
150,342
1,622,233
2,104,634
233,446
90,690
90,432
1,377,401
20,674
31,780
31,429
9,417
380,774
334,889
158,905
57,269
31,258
876,699
260,932
1,672,574
392,263
210,187
12,637
10,895
37,002
37,105
38,206
135,016
943,099
115,358
Gross
Fixed
Capital
Formation
1,972
12,787
3,321
166
8,936
2,998
12,983
2,680
18,661
90,706
116,912
4,585
52,182
58,192
6,177
52,444
559,570
664,627
47,409
24,622
19,709
428,521
7,359
8,657
18,343
2,139
149,734
110,697
43,291
22,431
10,463
310,001
101,606
372,027
140,710
100,297
3,785
3,883
12,776
23,848
12,447
48,632
415,796
31,837
Government
Consumption
Capital
Stock
Depreciation
579
6,034
2,556
193
4,035
2,262
14,201
2,482
34,203
81,111
137,999
5,527
44,825
95,112
5,035
65,909
682,196
701,729
54,396
14,754
34,077
457,573
5,135
9,301
16,551
3,014
234,453
98,528
47,936
18,089
11,075
317,899
144,285
568,301
75,377
110,112
4,969
1,451
9,311
9,453
12,595
11,824
351,514
31,263
17,654
53,715
113,502
1,447
146,632
38,565
219,251
25,636
232,188
1,403,034
1,783,639
107,863
775,849
1,209,164
69,240
1,019,964
10,080,064
11,173,211
1,139,518
434,347
438,644
9,824,561
88,498
99,648
214,345
27,618
2,382,736
1,373,813
995,775
269,181
215,737
5,857,728
1,134,734
6,084,913
1,920,845
1,226,300
84,265
51,893
139,573
164,956
239,117
573,398
6,738,264
800,936
706
2,149
4,540
58
5,865
1,543
8,770
1,025
9,288
56,121
71,346
4,315
31,034
48,367
2,770
40,799
403,203
446,928
45,581
17,374
17,546
392,982
3,540
3,986
8,574
1,105
95,309
54,953
39,831
10,767
8,629
234,309
45,389
243,397
76,834
49,052
3,371
2,076
5,583
6,598
9,565
22,936
269,531
32,037
Regions
Gross
Domestic
Product
Private
Consumption
Government
Consumption
Capital
Stock
Depreciation
7,342
Gross
Fixed
Capital
Formation
1,771
7,016
1,531
26,210
1,048
Rest of Europe
Kazakhstan
Kyrgyztan
Rest of Former Soviet Union
104,060
188,050
6,198
81,079
74,835
90,243
8,118
33,480
20,269
41,123
2,336
26,619
21,203
21,202
1,774
13,823
342,911
636,201
11,670
200,218
13,716
25,448
467
8,009
Armenia
Azerbaijan
Georgia
Bahrain
Iran Islamic Republic of
10,142
65,952
14,435
29,044
528,425
8,375
25,434
12,606
14,729
254,146
2,621
13,774
3,675
5,947
138,935
1,298
6,914
3,064
5,231
64,082
27,494
111,459
39,897
145,208
1,618,593
1,100
4,458
1,596
5,808
64,744
Israel
Jordan
Kuwait
Oman
Qatar
Saudi Arabia
Turkey
United Arab Emirates
Rest of Western Asia
Egypt
Morocco
Tunisia
Rest of North Africa
Benin
Burkina Faso
Cameroon
Cote d'Ivoire
Ghana
Guinea
Nigeria
Senegal
Togo
Rest of Western Africa
Central Africa
South Central Africa
Ethiopia
Kenya
Madagascar
Malawi
Mauritius
Mozambique
Rwanda
258,216
28,840
160,600
69,972
169,805
669,509
774,754
348,596
334,511
236,001
99,211
45,951
234,696
7,298
10,396
25,487
24,074
39,564
5,068
411,744
14,441
3,756
29,424
63,540
127,949
31,368
34,313
9,854
5,628
11,252
12,548
6,408
149,643
25,380
33,870
20,326
19,642
186,637
567,665
238,361
194,231
188,579
62,827
30,523
85,137
9,984
5,940
17,847
16,398
27,060
5,022
281,544
12,211
4,783
29,446
19,537
63,490
24,737
28,287
7,670
4,006
8,738
8,640
4,757
53,379
7,987
23,835
17,873
54,162
155,713
173,994
101,463
67,052
42,208
32,732
10,238
76,432
2,299
1,540
4,955
1,992
11,684
985
68,760
3,718
981
11,917
24,312
15,770
8,767
7,234
1,533
740
2,857
3,945
1,292
60,174
7,455
21,750
11,677
22,857
133,610
111,039
33,734
52,719
28,575
19,439
8,368
59,867
1,513
1,776
3,813
3,394
7,594
591
36,552
2,573
514
5,098
5,281
22,069
2,718
6,398
887
1,284
1,610
1,404
507
727,516
142,785
478,002
234,932
459,340
2,441,129
1,432,511
971,303
925,956
475,027
362,312
168,696
619,402
20,459
24,297
59,972
40,283
94,840
12,579
543,668
58,786
10,995
91,057
138,297
331,737
73,584
75,502
30,332
24,851
34,643
21,377
8,997
29,101
5,711
19,120
9,397
18,374
97,645
57,300
38,852
37,038
19,001
14,492
6,748
24,776
818
972
2,399
1,611
3,794
503
21,747
2,351
440
3,642
5,532
13,269
2,943
3,020
1,213
994
1,386
855
360
Rest of Eastern Europe
Regions
Tanzania
Uganda
Zambia
Zimbabwe
Rest of Eastern Africa
Botswana
Namibia
South Africa
Rest of South African Cust. Uni.
Rest of the World
Gross
Domestic
Product
Private
Consumption
23,872
15,493
19,202
10,956
78,748
15,292
12,452
403,891
6,633
182
15,729
11,308
8,821
10,394
55,088
6,275
6,091
244,631
4,016
102
Gross
Fixed
Capital
Formation
8,576
3,350
4,219
2,037
15,289
4,163
2,737
77,747
683
46
Government
Consumption
Capital
Stock
Depreciation
3,895
1,328
3,065
1,943
10,506
2,402
2,066
88,699
968
33
58,825
25,082
57,918
1,846
105,483
61,960
39,883
989,282
30,820
651
2,353
1,003
2,317
74
4,219
2,478
1,595
39,571
1,233
26