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Augmenting the GTAP Database with Data on Inter-Regional Transactions

By S. McDonald and Y. Sonmez


This paper reports the results of an exercise to augment the GTAP database with information from the income and current transfers components of the current account of the balance of payments. The exercise demonstrates that the process of augmenting the GTAP database is relatively straightforward. A simple simulation exercise using the augmented and non-augmented versions of the database demonstrates that the results from a trade liberalisation scenario are sufficiently large to provide a justification for the augmentation of the GTAP database over and above the case that could be argued based on national accounting conventions.\u

Publisher: Department of Economics, University of Sheffield
Year: 2004
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