Linked Input-Output Models for France, Germany, and Belgium

Nyhus, D.E. & Almon, C. (1980). Linked Input-Output Models for France, Germany, and Belgium. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-80-122

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Abstract

This paper presents a provisional method for the linking of national input-output models. The national models of Belgium, France and the Federal Republic of Germany are linked through export equations in which domestic demands of the buying countries are used to derive the export projections by sector of each country.

Two national scenarios are presented for comparison with a "basic case" scenario to illustrate the process. Alternative growth rates of exports by sector for 1980-87 are compared. An iterative method of solutions is used: the models are solved in succession. Convergence was found to take place in two iterations; a third iteration resulted in virtually no change.

The method has the drawback that consistency between imports and exports is not strictly adhered to. It has the virtues that new countries can easily be added to the existing set. An expansion of a set of countries to include the U.S., Canada and the U.K. is now planned.

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