Improving the European input–output database for global trade analysis

Abstract

There are increasing numbers of published articles in the feld of input–output analysis and modelling that use the GTAP input–output database; particularly, in relation to the estimation of carbon, energy and water footprints and the analysis of global value chains and international trade. The policy relevance of those topics is also increasing, thus calling for consistently linking these databases with ofcial statistics. Although, so far, GTAP has been using their own classifcation and reconciliation methods, this paper develops a new conversion method for the EU that guarantees that the EUGTAP database respects the new statistical standards and Eurostat ofcial statistics. We recommend for future updates, a shift of the current GTAP classifcation of industries to the new ofcial standard classifcations to which countries are progressively moving to. Otherwise, the lack of matching ofcial data would jeopardize the usefulness of such database. This method can be extended to other similar input–output databases with diferent classifcation schemes from the original input data sources