The Global Remainder groups every country IMPLAN does not cover individually, so an MRIO analysis can capture fully global impacts.
WHAT IS THE GLOBAL REMAINDER IN IMPLAN?
IMPLAN Global and IMPLAN Europe Subnational Regions include a Global Remainder region, an aggregation of countries developed specifically for modeling global economic impacts.
A user can include the Global Remainder region along with all other regions within the offering other than the directly impacted region(s) as part of a Multi-Regional Input-Output (MRIO) analysis to capture the global impacts from Events taking place in any number of the individual regions.
This article describes the data sources for the Global Remainder and provides links to the global release notes, which contain the list of individual countries covered by each release. That list determines which countries are included in the Global Remainder for each release.
THE GLOBAL REMAINDER
IMPLAN’s Global Remainder is an aggregation of all countries not individually covered by each release of IMPLAN Global or IMPLAN Europe Subnational Regions. The Global Remainder varies between these offerings and can also vary between each release of these offerings.
The Global Remainder in IMPLAN Global is comprised entirely of the OECD Rest of the World geography from the OECD Inter-Country Input-Output (ICIO) tables.
The Global Remainder in IMPLAN Europe Subnational Regions is comprised of all countries not covered individually by IMPLAN Europe Subnational Regions, including the Eurostat FIGARO Rest of the World geography.
A key feature of the OECD and Eurostat FIGARO ICIO tables is that trade flows are globally balanced, meaning that total exports are equal to total imports at the global level for all goods and services combined. Thus, these ICIO tables contain trade flows not only for the countries they cover individually, but also for a “rest of the world” (ROW) aggregate. IMPLAN uses these ICIO tables, along with other data sources, to develop a region called the Global Remainder1.
CONSTRUCTING THE GLOBAL REMAINDER REGION
While the foundational ICIO tables provide Output and Total Value Added by Industry for the Rest of World geography, they do not provide all the necessary details to run a full impact analysis. For example, there is no direct reporting of Employment by Industry for the Global Remainder region. Similarly, there is no tax data. Therefore, IMPLAN estimates these data points using several different data sources and methods.
IMPLAN GLOBAL
For IMPLAN Global, estimates of Employment by Industry are derived using an Employment per Employee Compensation ratio for all non-OECD member countries also covered by IMPLAN Global. Note that this is not all non-OECD member countries, but non-OECD member countries for which IMPLAN Global has coverage. This ratio is applied to the Employee Compensation by Industry estimates to derive Employment by Industry. A similar technique is used to estimate taxes for the Global Remainder. In this case, we use ratios of taxes per GDP for all non-OECD member countries that are also covered by IMPLAN Global and apply that to the Global Remainder’s total GDP. These methods assume that non-individually covered countries are more similar to non-OECD member countries.
IMPLAN EUROPE SUBNATIONAL REGIONS
For IMPLAN Europe Subnational Regions, very similar methods are applied. However, in this case, we do not limit the ratios to a subset of countries. This is because the countries that are not covered individually by IMPLAN Europe Subnational Regions are a mix of advanced economies and emerging market and developing economies. Because no single group of covered countries is representative of that mix, we do not restrict the Employment per Employee Compensation and taxes per GDP ratios to a particular income group or region.
HOW DO YOU USE THE GLOBAL REMAINDER IN A GLOBAL MRIO ANALYSIS?
The Global Remainder is specifically designed to allow users to conduct a fully global MRIO analysis. A user can include the Global Remainder along with all other regions within the offering other than the directly impacted region(s) to conduct an MRIO analysis to capture the global impacts from Events analyzed in any number of the individual regions. In doing this, the Global Remainder region accounts for economic activity in all other economies not individually covered by the offering.
Important
In each offering, the Global Remainder region includes multiple non-contiguous, economically distinct countries and does not represent a unified economy; thus, it should never serve as the principal Study Area in an analysis. The only use case for the Global Remainder region is in an MRIO analysis with all other regions already included.
1 IMPLAN uses the term Global Remainder instead of Rest of World (ROW) so as not to confuse it with the U.S.-based ROW account, which has a similar meaning in many respects but is not an exact equivalent. ↑