Construction of Multi-Regional Input–output Tables Using the Charm Method

Constructing a Multi-Regional Social Accounting Matrix for Turkey

“…It accounts for cross-hauling by estimating product heterogeneity and calculates the interregional trade between two regions. Kronenberg (2009) assumes that Tobben and Kronenberg (2015) extends the CHARM metod to the case bi and multi-regional IO tables.…”

“…By following CHARM method (Tobben and Kronenberg, 2015), regional domestic export to rest of Turkey and import from rest of Turkey values can be calculated from regional crosshauling and commodity balance of regions. From cross-hauling eq.…”

“…(3), export or import can be written in terms of , cross hauling, and it also equals trade valume and trade balance like above. Hovewer, Tobben and Kronenberg (2015) use regional commodity balance equation (Equation 2) in calculation in the interregional trade flows. By subtracting foreign imports and exports from regional commodity balance system, the remaining potential for cross-hauling in interregional trade for each region is taken into account in this fashion.…”

“…To further disaggregation of these row and column sum of interregional trade matrix, we will fallow a simple approach here, instead of some gravity models or some mechanical and mathematical methods such as RAS. By following Tobben and Kronenberg (2015), the approach for generating initial values that we adopted is to allocate imports or exports from the rest of the country to the regions of origin according to their market share in total interregional imports or exports (except exports of the importing region or vice versa). Aggregated version of interregional trade flows (which is not including sectoral decomposition of trade) can be seen at Table A2.…”

“…Here is the demonstration of interregional trade in MRSAM and their estimation brings a very convenient and appropriate way to regionalize the Social Accounting Matrix. The trade flows between different regions, which is necessary to compile multi-regional SAM has been estimated in accordance to a modified version of CHARM method (Tobben and Kronenberg, 2015).…”