Project Info
Project Code
1617AA
Tranche
T10
Tranche Type
Regular
Status
Closed
Title
Input-output tables for industrial and trade policies in Central and South America
Entities
Implementing Entity (Lead)
ECLAC
Financial and Evaluation Info
Total Budget
$788,000.00
Project Selected for Evaluation
No
Countries and Regions
Countries or Areas:
Bolivia (Plurinational State of), Dominican Republic (the), Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Venezuela (Bolivarian Republic of)
Regions:
Americas
Sub-Regions:
Intermediate Regions:
Countries in Special Situations:
Land Locked Developing Countries (LLDC), Small Island Developing States (SIDS)
Areas of Work
SDG
8
9
17
SDG Targets
8.2
8.3
9.2
17.11
17.16
Thematic Clusters
International Trade
Brief Description
The diversification of exports and structural transformation of the economies in Latin America depend increasingly on the participation of countries in region in global and regional production networks. These are more and more common due to the geographical fragmentation of production into regional and global value chains (RVCs and GVCs). These chains generate large flows of trade in intermediate goods and services as well as foreign direct investment (FDI). In this context, large public and private efforts have been undertaken recently to promote regional value chains (RVCs). National and regional policies to promote RVCs in the region are hindered by the lack of updated information on inter-sectoral links between the demand of intermediate goods and services and their supply of both domestic and imported origin. These two types of information are usually included in the national input-output tables (IOT) or, alternatively, in the national supply-use tables (SUT). Without these tools, it is very difficult to design of public policies that promote sectors within production networks and their contribution to structural change. Moreover, this absence of information prevents the development of suitable methods of evaluation of public policies already implemented, as governments cannot evaluate how much of the increase in demand is provided by specific industries or imports. In this context, there is a strong need to develop national, regional and subregional input-output tables that link the productive sectors, in particular in countries that are part of a subregional integration scheme, such as the Andean Community, Central American Common Market, or MERCOSUR. This project aims to strengthen the statistical and analytical capacities of Latin American countries to design and monitor trade and industrial policies through the construction and use of national input-output tables. In this context, the project aims to provide technical and capacity building support to a number of countries in the region to develop input-output tables for their economies. Together with already existing IOTs in most other Latin American countries, these newly built national IOTs facilitate the construction of subregional and regional IOT that will eventually be compiled. As a result, policy makers will be able to use the information derived from this tool for the analysis of productive links between countries. Thus, policy makers from each of the selected countries will be provided with the primary information to structure and promote the design of policy instruments adapted to national specificities, including the selection of sectors and potential domestic and subregional intersectoral linkages, through the analysis of indicators for subregional and/or regional value chains. The project responds to an urgent need for the development of regional quantitative tools based on robust data from national accounts. Both national and regional IOTs are powerful instruments for the design of public policies by identifying indicators related to the share of national value added in exports, the share of employment associated with productive and export activities, and national and international value chains at the sectoral level, among others. They will also be crucial in tracking progress of 2030 Agenda for Sustainable Development, in particular related to economic growth, structural transformation and international cooperation. One important output of this project is a multi-country Latin American input-output table that is built from information gathered from countries participating in the project and others in the region. This regional IOT will cover information from most countries of the above mentioned three subregions (project and non-project countries) plus Chile and Mexico. These two latter countries are not part of the three subregional integration schemes in the focus of the project and will not be project countries. Because of their economic relevance for the region, however, information from the two countries will be integrated in the regional IOT. Overall, the countries included in the regional IOT represent more than 90% of the region’s total trade and GDP.
Objective and Expected Outcomes
Objective
To strengthen the capacity of selected countries in Central and South America to design and monitor trade and industrial policies through the construction and use of national, subregional and regional input-output tables
Expected Outcome 1
Strengthened capacity of national and subregional statistical systems in selected Central and South American countries to enable them to design and build national, subregional and regional input-output tables
Expected Outcome 2
Improved capacity of national policy makers especially from trade and foreign affairs ministries in the selected Central and South American project countries, that will enable them to design and monitor national trade and industrial policies through the use of national, subregional and regional input-output tables
Expected Outcome 3
Increased knowledge of national policy makers and their representatives or delegates in regional integration schemes (Central American Common Market, Andean Community and MERCOSUR) to use or interpret the results of national, subregional and regional input-output tables to design policies to promote production complementarities at the subregional level