1. WIOD WORLD INPUT-OUTPUT DATABASE construction and applications
This project is funded by the European Commission, Research Directorate General as part of the 7th Framework Programme, Theme 8: Socio-Economic Sciences and Humanities.
Grant Agreement no:
WIOD WORLD INPUT-OUTPUT DATABASE construction and applications
Marcel Timmer
Groningen Growth and Development Centre
University of Groningen
(presentation at World KLEMS conference,
Harvard, August, 2010)

2. WORLD KLEMS database Benefits of WORLD KLEMS database
International comparisons of output, input and productivity growth at the industry level
and when combined with relative prices across countries (PPPs) international comparisons of levels also possible.
Although broad international guidelines (SNA, OECD manuals etc.) available, implementation conventions are needed, e.g. as in EU KLEMS project.

3. From WORLD KLEMS to WIOD
WORLD KLEMS contains national databases and is limited:
focus exclusively on the supply side
without interaction between national economies
New project started up to link national input-output tables with help of international trade data to capture international dependence through demand and trade: World input-output database (WIOD) project
Funded by funded by the European Commission, Research Directorate General as part of the 7th Framework Programme, Theme 8: Socio-Economic Sciences and Humanities (4 million euro, )

4. Who is in WIOD? University of Groningen (The Netherlands)
Institute for Prospective Technological Studies (Spain)
Wiener Institut für Internationale Wirtschaftsvergleiche (Austria)
Zentrum für Europäische Wirtschaftsforschung (Germany)
Österreichisches Institut für Wirtschaftsforschung (Austria)
Konstanz University of Applied Sciences (Germany)
The Conference Board Europe (Belgium)
CPB Netherlands Bureau for Economic Policy Analysis
Institute of Communication and Computer Systems (Greece)
Central Recherche SA (France)
OECD (France)

5. This presentation
To inform you about the World input-output database (WIOD) project and how it links with the World KLEMS initiative
Aims of WIOD-project
Brief outline of construction of the database
Preliminary applications to
consumption-accounting of green-house gas emissions and
Factor-content of international trade

6. Documentation and info
Dedicated website to WIOD project at
This presentation based on paper:
World Input-Output Database (WIOD):
Construction, Challenges and Applications
Prepared by
Abdul Azeez Erumban
Reitze Gouma
Bart Los
Robert Stehrer
Umed Temurshoev
Marcel Timmer
Gaaitzen de Vries

7. Aim of WIOD
Time-series of input-output tables with supply broken down by origin: domestically produced or imported (by partner country)
Satellite accounts:
Socio-economic (labour and capital input by type)
Environmental (energy, emissions to air and water, natural resources)
Period from 1995 to 2006:
27 EU countries and 13 other major countries
35 industries and 59 products

8. List of Countries EU-27 plus13 non-EU: - Canada - China
- United States - India
- Brazil - Japan
- Mexico - South Korea
- Turkey - Taiwan
- Russia - Indonesia
- Australia

9. WIOD characteristics Time-series benchmarked on National Accounts data
(Compared to other efforts such as GTAP, OECD, IDE etc.)
Time-series benchmarked on National Accounts data
Constant price tables
Explicit attention for (trade in) services
Supply and use tables as the basis
Satellite accounts (socio-economic and environmental)
Based on official statistics with maximum of transparency in calculations

10. National Input-Output (IO) Table (industry by industry type)

11. World input-output table (3 regions, industry-by-industry type)

12. Dataflows and construction steps in WIOT

13. Methodologies 1. Time-series of SUTs at purchasers’ prices
Extrapolation and benchmarking of SUTs to National Accounts statistics, based on SUT-RAS method (Temurshoev and Timmer 2009)
2. From SUTs at purchasers’ prices to basic prices
Construction of net tax, trade and transport margin matrices
3. From national to inter-country SUTs
Breakdown of Use table into domestic and imported (by delivering country)
Relying on imports from international trade statistics
Not simple proportional method, but distinction between intermediate, consumer and capital goods. This is based on a new classification of HS6-digit products to end-use
(In later stage use import tables from NSIs if available)

14. Methodologies 4. From SUTs to inter-country input-output table
Technology assumptions (on product sales or production)
Rest of World: exports to RoW is calculated as residual and can become negative
5. From current price to constant price tables
National deflators based on industry gross output deflators, and row wise deflation of SUT. At later stage add in more information from national accounts
International deflators (PPPs): World Bank ICP expenditure PPPs adjusted and allocated to industries (for 2005)

15. Possible applications
Production and consumption of Greenhouse gas emissions
Nakano et al. (2009, OECD), Davis and Caldena (2010, PNAS)
Quarter of produced CO2 emissions is not ‘consumed’ in same place
OECD net import is about 15-20% of own production, while China, Russia and Middle East are large net exporters
Trade in value added
Series of studies, mostly two regions (US and rest of world)
Trade imbalance in value added terms much less than in gross terms
Different angle on competitiveness and trade policy effects, and effects on wage inequality
Almost all studies so far are lacking time-series perspectives, and breakdown of value added into labour skill types and capital

16. Approach, akin to Reimer (2006, JIE)

17. Greenhouse gas emissions (Preliminary results)

18. Greenhouse gas emissions (Preliminary results)

19. Factor content of trade (Preliminary results)

20. Global value chain of final output in Korean Elec. Equip
Global value chain of final output in Korean Elec. Equip. Manu, 1995, 2005 (Preliminary results)

21. Global value chain of final output in Korean Elec. Equip
Global value chain of final output in Korean Elec. Equip. Manu, 1995, 2005 (Preliminary results)

22. Value chain of final output in Global Elec. Equip. Manu
Value chain of final output in Global Elec. Equip. Manu., 1995, 2005 (Preliminary results)

23. Value chain of final output in Global Elec. Equip. Manu
Value chain of final output in Global Elec. Equip. Manu., 1995, 2005 (Preliminary results)

24. Concluding remarks
Summary of methods and applications to be found in paper posted on the WORLDKLEMS website
Main innovations in WIOD
Time-series data
Methodological improvements (e.g. SUT-RAS; import tables)
Based on official data with transparent flow of adjustments
Integrated socio-economic and environmental accounts
Work in progress. Database will be made public
Including basic data so user can make alternative choices
parts of data public in autumn 2011; full data-set May 2012
Linking in the national KLEMS databases into WIOD will enhance potential area of applications

25. Additional material

26. Columns in Use table

27. Rows in Use table (part 1)

28. Rows in Use table (part 2)

29. WIOD project: Work Packages
WP1-3: Construction of harmonized supply and use tables, national input-output tables, price deflators, trade flows and intercountry input-output tables
WP4: Construction of environmental satellite accounts (energy use, greenhouse gas emissions, etc.)
WP5: Construction of socio-economic satellite accounts (skill levels, investment, accumulation of intangibles)
WP6: Methodological research
WP7-9: Development of new models and extension/adaptation of models with track record within EC