This project is funded by the European Commission, Research

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WIODWORLD INPUT-OUTPUT DATABASE construction and
applications
This project is funded by the European
Commission, Research Directorate General as part
of the 7th Framework Programme, Theme 8
Socio-Economic Sciences and Humanities. Grant
Agreement no 225 281

• Marcel Timmer
• Groningen Growth and Development Centre
• University of Groningen
• (presentation at World KLEMS conference,
• Harvard, 19-20 August, 2010)

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WORLD KLEMS database

• Benefits of WORLD KLEMS database
• International comparisons of output, input and
  productivity growth at the industry level
• and when combined with relative prices across
  countries (PPPs) international comparisons of
  levels also possible.
• Although broad international guidelines (SNA,
  OECD manuals etc.) available, implementation
  conventions are needed, e.g. as in EU KLEMS
  project.

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From WORLD KLEMS to WIOD

• WORLD KLEMS contains national databases and is
  limited
• focus exclusively on the supply side
• without interaction between national economies
• New project started up to link national
  input-output tables with help of international
  trade data to capture international dependence
  through demand and trade World input-output
  database (WIOD) project
• Funded by funded by the European Commission,
  Research Directorate General as part of the 7th
  Framework Programme, Theme 8 Socio-Economic
  Sciences and Humanities (4 million euro,
  2010-2012)

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Who is in WIOD?

• University of Groningen (The Netherlands)
• Institute for Prospective Technological Studies
  (Spain)
• Wiener Institut für Internationale
  Wirtschaftsvergleiche (Austria)
• Zentrum für Europäische Wirtschaftsforschung
  (Germany)
• Österreichisches Institut für Wirtschaftsforschung
  (Austria)
• Konstanz University of Applied Sciences (Germany)
• The Conference Board Europe (Belgium)
• CPB Netherlands Bureau for Economic Policy
  Analysis
• Institute of Communication and Computer Systems
  (Greece)
• Central Recherche SA (France)
• OECD (France)

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This presentation

• To inform you about the World input-output
  database (WIOD) project and how it links with the
  World KLEMS initiative
• Aims of WIOD-project
• Brief outline of construction of the database
• Preliminary applications to
• consumption-accounting of green-house gas
  emissions and
• Factor-content of international trade

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Documentation and info

• Dedicated website to WIOD project at www.wiod.org
• This presentation based on paper
• World Input-Output Database (WIOD)
• Construction, Challenges and Applications
• Prepared by
• Abdul Azeez Erumban
• Reitze Gouma
• Bart Los
• Robert Stehrer
• Umed Temurshoev
• Marcel Timmer
• Gaaitzen de Vries

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Aim of WIOD

• Time-series of input-output tables with supply
  broken down by origin domestically produced or
  imported (by partner country)
• Satellite accounts
• Socio-economic (labour and capital input by type)
• Environmental (energy, emissions to air and
  water, natural resources)
• Period from 1995 to 2006
• 27 EU countries and 13 other major countries
• 35 industries and 59 products

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List of Countries

• EU-27
• plus13 non-EU
• - Canada - China
• - United States - India
• - Brazil - Japan
• - Mexico - South Korea
• - Turkey - Taiwan
• - Russia - Indonesia
• - Australia

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WIOD characteristics

• (Compared to other efforts such as GTAP, OECD,
  IDE etc.)
• Time-series benchmarked on National Accounts data
  
• Constant price tables
• Explicit attention for (trade in) services
• Supply and use tables as the basis
• Satellite accounts (socio-economic and
  environmental)
• Based on official statistics with maximum of
  transparency in calculations

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National Input-Output (IO) Table (industry by
industry type)
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World input-output table (3 regions,
industry-by-industry type)
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Dataflows and construction steps in WIOT
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Methodologies

• 1. Time-series of SUTs at purchasers prices
• Extrapolation and benchmarking of SUTs to
  National Accounts statistics, based on SUT-RAS
  method (Temurshoev and Timmer 2009)
• 2. From SUTs at purchasers prices to basic
  prices
• Construction of net tax, trade and transport
  margin matrices
• 3. From national to inter-country SUTs
• Breakdown of Use table into domestic and imported
  (by delivering country)
• Relying on imports from international trade
  statistics
• Not simple proportional method, but distinction
  between intermediate, consumer and capital goods.
  This is based on a new classification of
  HS6-digit products to end-use
• (In later stage use import tables from NSIs if
  available)

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Methodologies

• 4. From SUTs to inter-country input-output table
• Technology assumptions (on product sales or
  production)
• Rest of World exports to RoW is calculated as
  residual and can become negative
• 5. From current price to constant price tables
• National deflators based on industry gross output
  deflators, and row wise deflation of SUT. At
  later stage add in more information from national
  accounts
• International deflators (PPPs) World Bank ICP
  expenditure PPPs adjusted and allocated to
  industries (for 2005)

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Possible applications

• Production and consumption of Greenhouse gas
  emissions
• Nakano et al. (2009, OECD), Davis and Caldena
  (2010, PNAS)
• Quarter of produced CO2 emissions is not
  consumed in same place
• OECD net import is about 15-20 of own
  production, while China, Russia and Middle East
  are large net exporters
• Trade in value added
• Series of studies, mostly two regions (US and
  rest of world)
• Trade imbalance in value added terms much less
  than in gross terms
• Different angle on competitiveness and trade
  policy effects, and effects on wage inequality
• Almost all studies so far are lacking time-series
  perspectives, and breakdown of value added into
  labour skill types and capital

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Approach, akin to Reimer (2006, JIE)
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Greenhouse gas emissions (Preliminary results)
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Greenhouse gas emissions (Preliminary results)
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Factor content of trade (Preliminary results)
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Global value chain of final output in Korean
Elec. Equip. Manu, 1995, 2005 (Preliminary
results)
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Global value chain of final output in Korean
Elec. Equip. Manu, 1995, 2005 (Preliminary
results)
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Value chain of final output in Global Elec.
Equip. Manu., 1995, 2005 (Preliminary results)
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Value chain of final output in Global Elec.
Equip. Manu., 1995, 2005 (Preliminary results)
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Concluding remarks

• Summary of methods and applications to be found
  in paper posted on the WORLDKLEMS website
• Main innovations in WIOD
• Time-series data
• Methodological improvements (e.g. SUT-RAS import
  tables)
• Based on official data with transparent flow of
  adjustments
• Integrated socio-economic and environmental
  accounts
• Work in progress. Database will be made public
• Including basic data so user can make alternative
  choices
• parts of data public in autumn 2011 full
  data-set May 2012
• Linking in the national KLEMS databases into WIOD
  will enhance potential area of applications

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Additional material
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Columns in Use table
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Rows in Use table(part 1)
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Rows in Use table(part 2)
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WIOD project Work Packages

• WP1-3 Construction of harmonized supply and use
  tables, national input-output tables, price
  deflators, trade flows and intercountry
  input-output tables
• WP4 Construction of environmental satellite
  accounts (energy use, greenhouse gas emissions,
  etc.)
• WP5 Construction of socio-economic satellite
  accounts (skill levels, investment, accumulation
  of intangibles)
• WP6 Methodological research
• WP7-9 Development of new models and
  extension/adaptation of models with track record
  within EC