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Global Linkage Model

Linkage Technical Reference Document

The LINKAGE model is a global dynamic computable general equilibrium (CGE) model maintained by the World Bank to support global trade policy analysis--for example in the current context of the multilateral trade negotiations under the auspices of the Doha Development Agenda. Its underlying database is a 2001-based global social accounting matrix (SAM) composed of 87 regions/countries (of which 69 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 database is a product of the Global Trade Analysis Project (GTAP) based at Purdue University. The model is recursive dynamic capturing population and labor dynamics, the role of savings and investment on capital accumulation and productivity. The model has been used widely in the World Bank's Global Economic Prospects reports, World Bank policy papers and external publications.

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