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GTAP Resources: Frequently Asked Question Details

Subject: FAQ

Question: I used GTAPAgg to create a 2-region (Sub-Saharan Africa(SSA) vs. ROW) GTAP database. But something is wrong with the bilateral trade flows. SSA total exports are about 100 billion, whereas ROW imports total 6 trillion. The difference must be intra-ROW trade. Why does GTAPAgg not "net out" intra-regional trade?


Intra-regional trade is included in the aggregated data, and this behaviour is "as designed" by Purdue. Most of the imports to ROW will in fact originate from ROW. And there will be a tariff (which you can alter) on ROW imports of ROW produce. The internal ROW-ROW trade distortion is still there in the data. If this intra-regional trade were "netted out" there would be more aggregation bias in the system.


Date Added: 8/10/2005