Macroeconomic Analysis for Economic Transformation: A proposal on SAM and CGE in Ethiopia

This project aims to undertake two interlinked activities:

(i) update the Input Output Table and National Social Accounting Matrix of the country; and

(ii) prepare research and policy outputs using SAM based multiplier analysis and a Computable General Equilibrium (CGE) model of the economy. 

The current IO table and SAM for Ethiopia was produced in 2010 using data from 2005/06. As a result, any analysis that is done regarding the impact of external shocks, social transfers, and other government policies is done using a dataset that does not adequately reflect the current economic structure of the country. Our proposed solution is to update the national SAM using the new survey data (such as the Household Consumption Expenditure Survey) and input output table we intend to generate. The combination of the two (updated IO and SAM) will enable us to produce an up to date information set regarding the production relation between sectors of the economy, the consumption and saving patterns of different groups of households, investment and transfer policies of the government, etc.