I Introduction and overview

The centerpiece of the Global Trade Analysis Project (GTAP) data base consists of bilateral trade, transport, and protection matrices that link 24 country/regional economic data bases. (See Table 3.1 for a complete list of regions and sectors in version 2 of the GTAP data base.) The regional data bases are derived from individual country input–output tables. The purpose of this chapter is to document the sources and procedures used in constructing the disaggregated 37-sector, 24-region data base that forms the basis for subsequent applications.

The next section discusses processing of the international bilateral merchandise trade data, which are published by the Statistical Office of the United Nations. These data are ideal for our purposes, but their reliability is questionable [see, for example, DeWulf (1981); Hiemstra and Mackie (1986); and Tsigas, Hertel, and Binkley (1992)]. Therefore, we discuss a statistical procedure for reconciling discrepant trade statistics and producing balanced bilateral trade and transport matrices for 1992. These bilateralized flows are also used to determine the pattern of trade in nonfactor services.

The third section discusses the support and protection data developed for GTAP. These are expressed in the form of ad valorem equivalent, tariff, and nontariff barriers, and they draw heavily on information submitted to the General Agreement on Tariffs and Trade (GATT) in connection with the Uruguay Round negotiations.