Model/3b_calibtrade.gms

Calibrates bilateral trade flows, bilateral transportation costs, prices to minimize deviation with observations for 2000 and at the same time ensures that for the base year of the model (2000):

  1. the sum of bilateral trade flows for a region matches with the FAO net trade (after potential adjustments of demand in 3_precompute) = equation h
  2. if there is a bilateral trade flow between two regions, the price in the importing region should be equal to the price in the exporting region plus all trade costs (tariff and transportation cost) = equation dx

Included files specific to trade calibration:

  • base_trade.gms which contains input trade data aggregated from country to GLOBIOM regions and HS6 products to GLOBIOM products
  • comptrade.gms
  • calibtrade.gms which launches trade calibration procedure product by product
  • calc_nettrade.gms which computes the net trade as it should be in the model i.e. based on FAOSTAT after potential demand/supply adjustments from model calibration