The ImpactECON Global Supply Chain Package

The ImpactECON Global Supply Chain package is a set of data and programs that allow you to convert the GTAP 9.0a-2011 Data Base into a global supply chain database for CGE modeling.

Why would you want to include Supply Chains?

Increasingly imports are being purchased by firms for intermediate use. Whether imports are purchased for intermediate or final use affects the extent to which domestic or international trade policies impact competitiveness, domestic production and employment. An example of this is the removal of tariffs on imports. When imports are sold to final consumers, the fall in tariffs causes substitution away from domestic production, lowering employment; while removal of tariffs on imports sold as intermediate goods raise competitiveness, production and employment. The repercussions of policies on intermediate and final imports is best examined in a model that includes supply chains.

Since the GTAP commodities are aggregates over numerous HS-6 categories, the GTAP commodity (e.g., motor vehicles, MVH) sold to sectors for intermediate demand (MVH-semi trailers) may fundamentally differ from the same aggregate commodity sold to households (MVH-small passenger cars). As such, tariff and non-tariff measures differ by the agent purchasing the commodity, as well as by the source and destination of the commodity.

More detailed information on the source of imported investment goods, and the tariff rates applied on these imports, improves our ability to analyze the impact of economic policies and other environmental factors on investment. Thereby improving our analysis of the trade balance and real exchange rate effects.

Additionally, many countries are interested in which policies they can implement to help them participate in global supply chains; and recognize how global supply chains affect their economic growth, future development, structural change, and vulnerability to external shocks.

A number of videos available that illustrate the differences in results between the standard GTAP model and those obtained when using the ImpactECON Supply chain model.

The ImpactECON Global Supply Chain Package includes:

  • a set of shares and scaling factors, and program that can be used to convert the GTAP 9.0a-2011 Data Base into the ImpactECON Global Supply Chain Database;
  • a program to convert a standard RunGTAP application of the GTAP model into an ImpactECON global supply chain application with supply chain database and model; and
  • full documentation and operating manuals.

Note that the ImpactECON Global Supply Chain Package does NOT include the GTAP Data Base. Users must purchase their own copy of the GTAP Data Base from the Center for Global Trade Analysis.

The Global Supply Chain Database includes additional information on:

  • Value of imports of commodities (57) purchased by sector (57), households, government and investment, source (140) and destination (140) regions at market, agent and world prices.
  • Differential tariffs on imports of commodities (57) purchased by sectors (57), households, government and investment by source (140) and destination (140).

The Global Supply Chain Model

The IESC model is based on the GTAP model and is solved in GEMPACK. The main difference between the IESC model and the GTAP model is in the treatment of imports. In the GTAP model, imports by sectors, government, households and investment agents are aggregated into a composite before being combined with domestic purchases in the second tier of the Armington import equation. In contrast, the IESC model tracks the importing agent and exporting country of each imported commodity, along with differential tariff rates by agent and source. This allows substitution between imports across exporting countries to occur for each agent. By capturing imports and tariffs by commodity, agent, source and destination, the IESC model provides further flexibility in examining the impact of various policies on welfare, production, trade and employment. Model documentation is available in ImpactECON Working Paper no. 6.

License types:

Single user license: These licenses are restricted to a single individual user and can be placed on up to two computers (desktop and laptop). This license covers a single release version of the GTAP Data Base (e.g. version 9.0) and any published correction of that release (e.g. version 9.0a). The individual user or their employer should be listed as the owner or licensee of the package. If the employer is listed then the individual user should be listed as the designated representative of the licensee. Note: all sales are final after the product has been delivered. No refunds.

 

Site license: These licenses cover a single release version of the GTAP Data Base, as provided in the single user license. However, these licenses may be used by the employees of a department or division within an institution. Geographically dispersed departments or divisions must obtain separate licenses. The license must be signed by a representative who is employed in the department or division and has the right to sign documents on their behalf. The representative will be responsible for ensuring the license conditions are met. Note: all sales are final after the product has been delivered. No refunds.

 

Annual license: These licenses are site licenses that include additional support and updates for a period of one year. Additional support is provided to answer technical issues related to the application of the supply chain model and database. Updates include improvements made to the supply chain data by ImpactECON, as well as updates to incorporate any corrections or new versions of the GTAP Data Base provided by the Center for Global Trade Analysis. Please contact ImpactECON for pricing on this product.