Adapting WIOD tables to national IO Tables for Turkey

Abstract

This paper presents the adjustment process of the WIOD (World Input-Output Database) tables of Turkey to national accounts data coming from the TurkStat (Turkish Statistical Institute). The database covers 27 EU countries and 13 other major countries in the world for the period 1995 to 2011. The main aim of the paper is to construct a series of balanced input-output tables (IOTs) for Turkey’s Interindustry Analysis Model (Turina). TURINA is an Interdyme type (Interindustry dynamic macroeconomic) model developed by INFORUM (Interindustry Forecasting at University of Maryland). The Inforum model requires one or more IO tables with three blocks: i. Total intermediate (domestic plus import) interindustry flow matrix, FM ii. Final demand block, FD, iii. And Value added block, VA. A time series of 35-sector annual IO tables for the Turkish economy has been constructed by the WIOD. The format of national input-output tables in WIOD is different from the normal format of national input-output tables which can be directly used in building an INFORUM model. The WIOD structure consists of six blocks: i. Intermediate flow matrix which only shows domestically produced inputs. ii. Final demand goods produced by domestic industries. iii. An import matrix which shows import components of intermediate inputs into domestic industries. iv. Imports components of final demand categories. v. Value added block at the bottom rows of the whole table. vi. Some elements of value added rows inside the final demand block. In the adjustment process three major steps are taken. The first step requires the addition of import rows to domestic rows in order to obtain the total intermediate and final demand figures. The second step requires the adjustment of the sum of final demand categories to national account totals at aggregate level. The third step requires the adjustment of value added totals to national account income figures provided by national statistical office. After all these steps any imbalances which are almost always the case an RAS procedure is applied to balance the whole system at sectoral level. At the present stage I have checked the WIOD table for 2011. Starting from the final demand side, I observed that there are no deviations for Government expenditures and Gross domestic fixed investment between the WIOD and the TurkStat figures. For other variables of final demand block (Consumption, Changes in stocks, Exports, Imports,) some slight differences were observed. Therefore initially, the GDP figure in the TurkStat sources exceeded the WIOD figure by 3.2 percent. Finally, with a series of balancing adjustments both at macro and sectoral level the WIOD table for 2011 is made consistent with the TurkStat data.