Purpose – This report aims to address the methods used to obtain multi-regional input-output tables (MRIO-tables). Method – The research focuses on three gravity model of trade methods: simple gravity model estimation, doubly constrained gravity model estimation, and gravity model estimation with calibrated error function minimization. These methods are used for estimating and modelling multiregional trade flows, specifically in the context of MRIO-tables. These methods will be denoted as method 1, method 2 and method 3. Through a comparative analysis, the study focuses on the strengths and limitations of these methods and provides valuable insights for policymakers and researchers in the field. The findings contribute to a better understanding of the differences between the methods and their effectiveness in accurately representing MRIO-tables. Findings – This study evaluates three methods (mentioned above) for estimating multiregional trade flows, highlighting their performance. Method 1 and 2, exhibited similarities in their approach to estimating trade flows, both surpassing the performance of method 3 across various evaluation metrics. According to the results, method 1 and 2 are better than method 3 in accurately estimating multiregional trade flows. Limitations – This work had some limitations, the research focused on one specific product and how they flow between and across the regions as well as the total quantity of this product, i.e., the margins.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:umu-223772 |
| Date | January 2023 |
| Creators | Sahin, Deniz |
| Publisher | Umeå universitet, Institutionen för matematik och matematisk statistik |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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