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Linkage Technical Reference Document

The LINKAGE model is a global dynamic computable general equilibrium (CGE) model maintained by the World Bank to support global policy analysis such as trade policy, global savings and investment. Its underlying database is the most recent Global Trade Analysis Project (GTAP) data base i.e. a 2007-based global social accounting matrix (SAM) composed of 129 regions/countries (of which 109 are individual countries) and 57 economic sectors. Bilateral trade is fully accounted for and includes estimates of export taxes/subsidies, international trade and transport margins, and bilateral import tariffs that incorporate preferences. The database also includes various measures of domestic support--particularly as regards agriculture in the OECD countries. The model is recursive dynamic capturing population and labor dynamics, differential sectoral productivity growth and the roles of savings and investment in capital accumulation. The model has been used widely in the World Bank's Global Economic Prospects reports, World Bank policy papers and external publications.

For analyses of poverty, shared prosperity and the distributional impacts of policies the LINKAGE model can be paired with the GIDD in a macro-micro simulation framework .

For Linkage-related questions contact: Maryla Maliszewska or Syud Amer Ahmed.

CGE-based Analysis at DECPG

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