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