Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

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New Mixed Method of CHARM-RAS for Generating Regional Input-Output Tables (RIOTs) of Gilan and Hormozgan Provinces, Iran


Affiliations
1 Allameh Tabataba'i University, Tehran, Iran, Islamic Republic of
2 Eco-College of Insurance, Allameh Tabataba'i University, Tehran, Iran, Islamic Republic of
3 Allameh Tabataba'i University, Iran, Islamic Republic of
     

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The application of CHARM for the estimation of RIOTs needs two residuals: exports and value added. The first one seems to be plausible whereas the second one is not appropriate for those countries like Iran which have regional accounts. The comparison of the regional sectoral value added and the regional GDP figures of Gilan and Hormozgan provinces derived from the CHARM method with corresponding official figures reveal underestimation of 2.4 per cent for Gilan province and overestimation of 9.9 per cent for Hormozgan province. These deviations are more pronounced in regional sectoral value added of two provinces. These observations raise an important question: why one should overlook and/or unnecessarily adjust the official data? To solve this issue a new mixed CHARM-RAS method is proposed. The overall findings show that first of all, as compared to the CHARM method, the proposed mixed method guarantees the regional sectoral value added and GDP of two provinces provided by SCI. Secondly, the degree of accuracy between two methods reveals that the proposed method outperforms the CHARM method in all the statistical methods.
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  • New Mixed Method of CHARM-RAS for Generating Regional Input-Output Tables (RIOTs) of Gilan and Hormozgan Provinces, Iran

Abstract Views: 572  |  PDF Views: 4

Authors

A. A. Banouei
Allameh Tabataba'i University, Tehran, Iran, Islamic Republic of
P. Mohajeri
Allameh Tabataba'i University, Tehran, Iran, Islamic Republic of
J. Banouei
Eco-College of Insurance, Allameh Tabataba'i University, Tehran, Iran, Islamic Republic of
Z. Ziyaei
Allameh Tabataba'i University, Iran, Islamic Republic of
S. Tavassoli
Allameh Tabataba'i University, Iran, Islamic Republic of
Z. Eghtesadi
Allameh Tabataba'i University, Iran, Islamic Republic of
S. Sadeghi
Allameh Tabataba'i University, Iran, Islamic Republic of

Abstract


The application of CHARM for the estimation of RIOTs needs two residuals: exports and value added. The first one seems to be plausible whereas the second one is not appropriate for those countries like Iran which have regional accounts. The comparison of the regional sectoral value added and the regional GDP figures of Gilan and Hormozgan provinces derived from the CHARM method with corresponding official figures reveal underestimation of 2.4 per cent for Gilan province and overestimation of 9.9 per cent for Hormozgan province. These deviations are more pronounced in regional sectoral value added of two provinces. These observations raise an important question: why one should overlook and/or unnecessarily adjust the official data? To solve this issue a new mixed CHARM-RAS method is proposed. The overall findings show that first of all, as compared to the CHARM method, the proposed mixed method guarantees the regional sectoral value added and GDP of two provinces provided by SCI. Secondly, the degree of accuracy between two methods reveals that the proposed method outperforms the CHARM method in all the statistical methods.

References





DOI: https://doi.org/10.21648/arthavij%2F2017%2Fv59%2Fi4%2F170799