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GTAP Resource #2338

"The quality of Bilateral Services Trade data"
by van Leeuwen, Nico, Arjan Lejour and Arie Ten Cate

This paper has two aims. First of all, it presents CPB’s contribution of bilateral services trade data to version 7 of the GTAP database (Narayanan and Walmsley, 2008). Among others, it uses reliability indices to determine the quality of the data reported by exporting and importing countries, using the Gehlhar (1996) method. Second, this paper discusses briefly alternative methods to make a choice between two available reporting data for the same bilateral flow.

In section 2 we present an overview of the available Bilateral Services Trade data for the GTAP-7 database. As outlined in Van Leeuwen and Lejour, 2006 we use the method of Gehlhar (1996) to check the reliability of the reporting country if there are two reporting observations available for the same bilateral flow. This is described in section 3. In section 4 we present the other decisions: if we only have one observation for a certain flow, we use this observation, and in case there is no flow at all, we have to construct a value based on total imports and exports. The database for 2004 contains many gaps, which means that many estimates are necessary to present a full matrix of bilateral services trade flows. These estimates are partly based on data for 2003. In section 5 we discuss briefly the concordance between the services sectors. The resulting matrices of bilateral services trade flows are presented in the appendix. In section 6 we discuss alternative methods to model the discrepancies, in particular the bias model of Tsigas, Hertel and Binkley (1992) and the variance model which is generally used to compile macro-economic statistics. Finally, we compare the results of the three methods for a small sample of 12 bilateral flows.

Resource Details (Export Citation) GTAP Keywords
Category: 2007 Conference Paper
Status: Published
By/In: Presented at the 10th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2007
Version: 2049
Created: van Leeuwen, N. (4/13/2007)
Updated: van Leeuwen, N. (12/16/2008)
Visits: 3,917
- Trade in services
- The GTAP Data Base and extensions

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