Task 1: Construct the Ghana macro-SAM

Use Table 1 in the guidebook to help you link the appropriate information from the four dataset worksheets to the cell entries in the macro
The SAM is balanced when total incomes equal total expenditures for each and every account.

Activities Commodities Labor Capital Households Government

Activities 24,996
Commodities 12,029 12,142 1,805
Labor 9,717
Capital 3,250
Households 9,717 3,250 1,387
Government 2,372 940
Savings 3,272 860
Rest of world 8,439
Total 24,996 35,807 9,717 3,250 16,354 4,052

Task 2: Deriving key statistics from the Ghana SAM

2007 SAM for Ghana with 7 sectors

Units: Millions of new Ghanaian Cedis (current prices)
Activties
aagr amin aman aelco atrad apubs
aagr 0 0 0 0 0 0
amin 0 0 0 0 0 0
aman 0 0 0 0 0 0
aelco 0 0 0 0 0 0
atrad 0 0 0 0 0 0
apubs 0 0 0 0 0 0
aprvs 0 0 0 0 0 0
cagr 606 0 831 0 0 0
cmin 0 0 13 56 0 0
cman 574 413 1,303 1,059 1,418 53
celco 26 114 374 91 25 6
ctrad 1,249 53 677 76 706 135
cpubs 0 0 0 0 0 0
cprvs 64 73 0 0 95 0
lab 4,215 251 823 1,179 1,089 1,285
cap 336 505 436 755 271 394
hrur 0 0 0 0 0 0
hurb 0 0 0 0 0 0
gov 0 0 0 0 0 0
s-i 0 0 0 0 0 0
row 0 0 0 0 0 0
total 7,070 1,410 4,458 3,217 3,605 1,873

PART 1: PRODUCTION SHARES

Activity production values
Copy the activity column values below and calculated the total for all sectors
Activties
aagr amin aman aelco atrad apubs
cagr 606 0 831 0 0 0
cmin 0 0 13 56 0 0
cman 574 413 1,303 1,059 1,418 53
celco 26 114 374 91 25 6
ctrad 1,249 53 677 76 706 135
cpubs 0 0 0 0 0 0
cprvs 64 73 0 0 95 0
lab 4,215 251 823 1,179 1,089 1,285
cap 336 505 436 755 271 394
total 7,070 1,410 4,458 3,217 3,605 1,873

Gross domestic product (GDP) at factor cost

Calculate the value of GDP from the above table
aagr amin aman aelco atrad apubs
GDP fc 4,551 756 1,259 1,934 1,361 1,679

GDP sectoral shares

Calculate each sector's contribution or share to GDP
aagr amin aman aelco atrad apubs
GDP fc 35.1 5.8 9.7 14.9 10.5 12.9

Q1: What is the contribution of the mining sector to total GDP?

A1: 5.83%

Value-added shares
Calculate capital and labor's contribution to each sector's GDP
aagr amin aman aelco atrad apubs
lab 92.6 33.2 65.4 61.0 80.0 76.5
cap 7.4 66.8 34.6 39.0 20.0 23.5
GDP fc 100.0 100.0 100.0 100.0 100.0 100.0

Q2: Which are the three most labor-intensive sectors?

A2: Agriculture, public services, and trade services

Q3: Which are the three most capital-intensive sectors?

A3: Mining, manufacturing, and electricity/construction

Activity production shares

Calculate the share of commodity and factor inputs in each sector's gross output
 aagr amin aman aelco atrad apubs
cagr 8.6 0.0 18.6 0.0 0.0 0.0
cmin 0.0 0.0 0.3 1.7 0.0 0.0
cman 8.1 29.3 29.2 32.9 39.3 2.8
celco 0.4 8.1 8.4 2.8 0.7 0.3
ctrad 17.7 3.8 15.2 2.4 19.6 7.2
cpubs 0.0 0.0 0.0 0.0 0.0 0.0
cprvs 0.9 5.2 0.0 0.0 2.6 0.0
lab 59.6 17.8 18.5 36.7 30.2 68.6
cap 4.8 35.8 9.8 23.5 7.5 21.0
total 100.0 100.0 100.0 100.0 100.0 100.0

Q4: What share of the value of mining output is from manufacturing inputs?
A4: 29.3%

Q5: What share of trade output is from trade inputs?

A5: 19.6%

PART 2: COMMODITY SHARES

Trade data
Copy the value of imports and exports into the table below
cagr cmin cman celco ctrad cpubs
Imports 575 0 7,440 9 0 0
Exports 2,016 1,341 679 0 0 0

Trade shares
Calculate the share of each commodity in total exports, and then in total imports
cagr cmin cman celco ctrad cpubs
Imports 6.8 0.0 88.2 0.1 0.0 0.0
Exports 39.1 26.0 13.2 0.0 0.0 0.0

Q6: Most of Ghana's foreign exchange is generated by which commodity?

A6: Agriculture

Q7: Ghana both imports and exports private services. What might these be?
A7: Tourism, or financial insurance on goods exports

Demand data
Calculate total, intermediare and final demand for each commodity
cagr cmin cman celco ctrad cpubs
Total 7,805 1,410 13,742 3,251 3,904 1,873
Intermediate 1,563 69 5,127 716 3,679 0
Final 6,242 1,341 8,615 2,535 225 1,873
Trade-intensities
Calculate the import-penetration and export-intensities for each commodity
cagr cmin cman celco ctrad cpubs
Import penetrat 7.4 0.0 54.1 0.3 0.0 0.0
Export intensity 28.5 95.1 15.2 0.0 0.0 0.0

Q8: Which sector faces the most competition from imports?

A8: Manufacturing

Q9: Which sector exports the most of what it produces?

A9: Mining

PART 3: DEMAND SHARES

Demand values
Copy commodity demand values into the table below
Inter. Private Govern. Invest- Exports Total
demand cons. cons. ment
cagr 1,563 4,226 0 0 2,016 7,805
cmin 69 0 0 0 1,341 1,410
cman 5,127 5,310 0 2,626 679 13,742
celco 716 481 0 2,054 0 3,251
ctrad 3,679 225 0 0 0 3,904
cpubs 0 69 1,805 0 0 1,873
cprvs 876 1,832 0 0 1,115 3,822
total 12,029 12,142 1,805 4,680 5,151 35,807

Demand shares (by commodity)

Calculate commodity shares for each source of demand
Inter. Private Govern. Invest- Exports Total
demand cons. cons. ment
cagr 13.0 34.8 0.0 0.0 39.1 21.8
cmin 0.6 0.0 0.0 0.0 26.0 3.9
cman 42.6 43.7 0.0 56.1 13.2 38.4
celco 6.0 4.0 0.0 43.9 0.0 9.1
ctrad 30.6 1.9 0.0 0.0 0.0 10.9
cpubs 0.0 0.6 100.0 0.0 0.0 5.2
cprvs 7.3 15.1 0.0 0.0 21.6 10.7
total 100.0 100.0 100.0 100.0 100.0 100.0
100.0

Q10: Most of household demand is for which two commodities?

A10: Agriculture, and manufacturing
 Q11: Investment generates demand for which commodities?
A11: Manufacturing, and electricity/construction

Demand shares (by demand source)

Calculate the share of demand from each source for each commodity
Inter. Private Govern. Invest- Exports Total
demand cons. cons. ment
cagr 20.0 54.1 0.0 0.0 25.8 100.0
cmin 4.9 0.0 0.0 0.0 95.1 100.0
cman 37.3 38.6 0.0 19.1 4.9 100.0
celco 22.0 14.8 0.0 63.2 0.0 100.0
ctrad 94.2 5.8 0.0 0.0 0.0 100.0
cpubs 0.0 3.7 96.3 0.0 0.0 100.0
cprvs 22.9 47.9 0.0 0.0 29.2 100.0
total 33.6 33.9 5.0 13.1 14.4 100.0
14.4

PART 4: HOUSEHOLD SHARES

Household expenditure values

Copy values of household expenditures into the table below
hrur hurb total
cagr 2,453 1,773 4,226 Household expenditure on agricultural goods
cmin 0 0 0 Household expenditure on mining goods
cman 2,395 2,915 5,310 Household expenditure on manufacturing goods
celco 158 323 481 Household expenditure on electricty and construction
ctrad 73 152 225 Household expenditure on trade services
cpubs 33 35 69 Household expenditure on public services
cprvs 599 1,234 1,832 Household expenditure on private services
gov 0 940 940 Household tax expenditure
s-i 1,547 1,725 3,272 Household savings
total 7,257 9,097 16,354 Total household expenditure
9,097

Q12: Which commodity do rural households spend most of their income on?
A12: Agriculture

Q13: Which commodity do urban households spend most of their income on?
A13: Manufacturing

Q14: Which households pays direct taxes to the government?

A14: Urban households

Q15: Which households save some of their income?

A15: Both rural and urban households
Household expenditure shares
Calculate household expenditure on each item as a share of total household expenditure
hrur hurb total
cagr 33.8 19.5 25.8
cmin 0.0 0.0 0.0
cman 33.0 32.0 32.5
celco 2.2 3.6 2.9
ctrad 1.0 1.7 1.4
cpubs 0.5 0.4 0.4
cprvs 8.2 13.6 11.2
gov 0.0 10.3 5.7
s-i 21.3 19.0 20.0 20.0
total 100.0 100.0 100.0

Q16: What share of urban households' income is spent on paying taxes?

A16: 10.3%

Q17: Rural households spend which share of their income on private services?
A17: 8.2%

Q18: Urban households save what share of their income?

A18: 19.0%

Household income values

Copy the values of household incomes into the table below
lab cap gov row total
hrur 5,054 1,248 547 409 7,257
hurb 4,663 2,002 840 1,592 9,097
total 9,717 3,250 1,387 2,001 16,354 16,354

Household income shares

Calculate household income from each source as a share of total household income
lab cap gov row total
hrur 69.6 17.2 7.5 5.6 100.0
hurb 51.3 22.0 9.2 17.5 100.0
total 59.4 19.9 8.5 12.2 100.0
12.2

Q19: What is the most important source of income for households?

A19: Labor

Q20: Which household is most reliant on capital incomes?

A20: Urban households

Q21: Which household benefits the most from remittances?

 A21: Urban households

PART 4: MACRO SHARES

Macro values
Calculate the following macro aggregate values
GDP at factor cost 12,967
Recurrent fiscal balance 860
Current account balance -548 Current account should be positive if there is money going out of the
Private savings 3,272
Imports 8,439
Exports 5,151
GDP at market prices 15,339

Macro statistics
Calculate the follwing macro statistics using the above numbers (all GDP references at are market prices)
Trade-to-GDP ratio (%) 88.6 Imports plus exports as a share of GDP at market price
Fiscal balance-to-GDP ratio (%) 5.6
Current account-to-GDP ratio (%) -3.6
Private savings-to-investment ratio (%) 69.9 Use total investment from the SAM

Q22: Would you say that Ghana is an open or closed economy?

A22: Open economy, since total trade is a large share of GDP

Q23: Is the government running a recurrent fiscal deficit or surplus, and explain why?
A23: Recurrent fiscal surplus, since government savings is positive. However, this excludes the cost of
public investment. It also reflects Ghana reliance on foreign transfers (i.e., grants).

Task 3: Calculating round-by-round multiplier effects

2007 SAM for Ghana with 2 sectors

Units: Millions of old Ghanaian Cedis (current prices)
Activities Commodities Factors Other accounts
aagr anagr cagr cnagr fac hhd
aagr 7,070
anagr 17,926
cagr 606 957 4,226
cnagr 1,913 8,554 7,916
fac 4,551 8,416
hhd 12,967
gov 160 2,212 940
s-i 3,272
row 575 7,864
total 7,070 17,926 7,805 28,002 12,967 16,354
Input-output (IO) coefficients
Calculate the intermediate inputs required per unit of activity output
Activities
aagr anagr
cagr 0.09 0.05
cnagr 0.27 0.48 0.48

Round-by-round backward production linkage effects

Calculate 3 rounds of impacts from a 10 billion cedis increase (shock) in agricultural production

SHOCK ROUND 1 ROUND 2

agr
0.07

agr
0.86
0.86

nagr
0.23

agr
10

agr
0.14
0.14
nagr
2.71
2.71

nagr
1.29

Q1: What was the size of the shock's direct impact on agricultural production?
A1: 10.00 billion cedis

Q2: What was the increase in agricultural production during Round 1?

A2: 0.86 billion cedis

Q3: What was the increase in agricultural production during Round 2?

A3: 0.22 billion cedis

Q4: What was the increase in agricultural production during Round 3?

A4: 0.10 billion cedis

Q5: What is the total increase in agricultural production after 3 rounds?

A5: 11.18 billion cedis

Q6: What is the total increase in nonagricultural production after 3 rounds?

A6: 5.01 billion cedis

Q7: What was the overall size of the indirect multiplier effect after 3 rounds?
A7: 6.19 billion cedis

Q8: What was the overall impact of the shock after 3 rounds?
A8: 16.19 billion cedis
orksheets to the cell entries in the macro-SAM.

Investment Rest of world Total Difference (row-col)

24,996 0
4,680 5,151 35,807 0
9,717 0
3,250 0
2,001 16,354 0
739 4,052 0
548 4,680 0
8,439 0
4,680 8,439

Commodities Factors
aprvs cagr cmin cman celco ctrad cpubs cprvs lab
0 7,070 0 0 0 0 0 0 0
0 0 1,410 0 0 0 0 0 0
0 0 0 4,458 0 0 0 0 0
0 0 0 0 3,217 0 0 0 0
0 0 0 0 0 3,605 0 0 0
0 0 0 0 0 0 1,873 0 0
0 0 0 0 0 0 0 3,363 0
126 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
307 0 0 0 0 0 0 0 0
80 0 0 0 0 0 0 0 0
782 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
643 0 0 0 0 0 0 0 0
874 0 0 0 0 0 0 0 0
552 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 5,054
0 0 0 0 0 0 0 0 4,663
0 160 0 1,844 25 298 0 45 0
0 0 0 0 0 0 0 0 0
0 575 0 7,440 9 0 0 415 0
3,363 7,805 1,410 13,742 3,251 3,904 1,873 3,822 9,717
 SAM legend
aagr Activity - agriculture
amin Activity - mining
aman Activity - manufacturing
aprvs total aelco Activity - electricity, water, and co
126 1,563 atrad Activity - trade and transports
0 69 apubs Activity - public services
307 5,127 aprvs Activity - private services
80 716 cagr Commodity - agriculture
782 3,679 cmin Commodity - mining
0 0 cman Commodity - manufacturing
643 876 celco Commodity - electricity, water, an
874 9,717 ctrad Commodity - trade and transpor
552 3,250 cpubs Commodity - public services
3,363 24,996 24,996 cprvs Commodity - private services
lab Factor - labor
cap Factor - capital
hrur Households - rural
hurb Households - urban
aprvs total gov Government
1,426 12,967 12,967 s-i Savings/investment
row Rest of the world
total Column and row total

aprvs total
11.0 100.0
11.0

aprvs total
61.3 74.9 74.9
38.7 25.1
100.0 100.0
aprvs total
3.7 6.3
0.0 0.3
9.1 20.5
2.4 2.9
23.2 14.7
0.0 0.0
19.1 3.5
26.0 38.9
16.4 13.0 13.0
100.0 100.0 100.0

cprvs total
415 8,439
1,115 5,151 5,151

cprvs total
4.9 100.0
21.6 100.0
21.6

cprvs total
3,822 35,807 35,807 Total demand is demand for all goods and services
876 12,029 12,029 This is demand for commodities used in the production process
2,947 23,778 Final demand includes private consumption, government consumption, investment
 2,947

cprvs total
10.8 23.6 23.6 Import penetration is the share of imports in total domestic demand
33.1 20.6 20.6 Export intensity is the share of exports in gross output
33.1

35,807

10.7
 100.0

cultural goods

ufacturing goods
tricty and construction
tive if there is money going out of the country

orts as a share of GDP at market prices

ent from the SAM

excludes the cost of

Other accounts
gov s-i row total SAM legend
7,070 aagr Activity - agriculture
17,926 anagr Activity - nonagriculture
2,016 7,805 cagr Commodity - agriculture
1,805 4,680 3,134 28,002 cnagr Commodity - nonagriculture
12,967 fac Factors - labor and capital
1,387 2,001 16,354 hhd Households - rural and urban
739 4,052 gov Government
860 548 4,680 s-i Saving/investment
8,439 row Rest of the world
4,052 4,680 8,439 total Column and row total
ROUND 3

agr IMPORTANT:
0.01 0.01 Remember that we are only calculating backward production linkages in this Task.
This is the additional intermediate demand generated when a sector expands prod
nagr
0.02 1. Calculate the first round effects by multiplying the direct increase in agricultural
by the respective IO coefficient for agriculture and nonagricultural intermediate inp

agr 2. Use the increase in production from the first round to calculate the increase in p
0.01 in the second round.

nagr 3. Make sure that your results are the same as the values in blue next to the cell en
0.11 0.11
4. Complete this flow-chart by linking previous round results to the coefficients in t
Do not just paste results into the cells
agr
0.01 5. You should use cell references or links when answering the questions in red belo

nagr
0.04

agr
0.07

nagr
0.62 0.62
Factors Households Other accounts
cap hrur hurb gov s-i row total
0 0 0 0 0 0 7,070 0.0000
0 0 0 0 0 0 1,410 0.0000
0 0 0 0 0 0 4,458 0.0000
0 0 0 0 0 0 3,217 0.0000
0 0 0 0 0 0 3,605 0.0000
0 0 0 0 0 0 1,873 0.0000
0 0 0 0 0 0 3,363 0.0000
0 2,453 1,773 0 0 2,016 7,805 0.0000
0 0 0 0 0 1,341 1,410 0.0000
0 2,395 2,915 0 2,626 679 13,742 0.0000
0 158 323 0 2,054 0 3,251 0.0000
0 73 152 0 0 0 3,904 0.0000
0 33 35 1,805 0 0 1,873 0.0000
0 599 1,234 0 0 1,115 3,822 0.0000
0 0 0 0 0 0 9,717 0.0000
0 0 0 0 0 0 3,250 0.0000
1,248 0 0 547 0 409 7,257 0.0000
2,002 0 0 840 0 1,592 9,097 0.0000
0 0 940 0 739 4,052 0.0000
0 1,547 1,725 860 0 548 4,680 0.0000
0 0 0 0 0 0 8,439 0.0000
3,250 7,257 9,097 4,052 4,680 8,439
Activity - agriculture
Activity - mining
Activity - manufacturing
Activity - electricity, water, and construction
Activity - trade and transports
Activity - public services
Activity - private services
Commodity - agriculture
Commodity - mining
Commodity - manufacturing
Commodity - electricity, water, and construction
Commodity - trade and transports
Commodity - public services
Commodity - private services
Factor - labor
Factor - capital
Households - rural
Households - urban
Government
Savings/investment
Rest of the world
Column and row total
tion process
ment consumption, investment, and exports
omestic demand
roduction linkages in this Task.
ed when a sector expands production

e direct increase in agricultural production

onagricultural intermediate inputs

d to calculate the increase in production

alues in blue next to the cell entries.

d results to the coefficients in the IO table.

wering the questions in red below.

Ghana's 2007 Gross Domestic Product (GDP) at factor cost
Units: Millions of new Ghanaian Cedis (current prices)

Agricultural GDP 4,785 Capital-labor value-added shares

Agriculture and livestock 2,701 Labor
Cocoa production and marketing 1,000 Capital
Forestry and logging 483
Fishing 602
Industrial GDP 3,613
Mining and quarrying 823 Value-added and intermediate demand sh
Manufacturing 1,067 Intermediates
Electricity and water 341 Value-added
Construction 1,382
Services GDP 4,569
Transport, storage and communication 646
Wholesale and retail trade, restaurants and hotels 1,003
Finance, insurance, real estate, and business services 667
Government services 1,808
Community, social and personal services 329
Private nonprofit services 115

Total GDP at factor cost 12,967

Plus indirect taxes 2,372

Total GDP at market prices 15,339
bor value-added shares
75%
25%
100%

ded and intermediate demand shares of total value added

48%
52%
100%
Ghana's 2007 Gross Domestic Product (GDP) at market prices
Units: Millions of new Ghanaian Cedis (current prices)

Consumption expenditure 13,947

Government recurrent spending 1,805
Household private consumption 12,142

Gross capital formation 4,680

Foreign trade balance -3,288

Total exports of goods and services 5,151
Total imports of goods and services -8,439

Total GDP at market prices 15,339

Ghana's 2007 Government Budget
Units: Millions of new Ghanaian Cedis (current prices)

Total revenues 4,170

Tax revenues 3,312

Direct taxes 940
Personal tax 453
Corporate tax 400
Other tax 87
Indirect taxes 2,372
Sales tax 835
Petroleum tax 403
Import tariffs 773
Export tax (cocoa) 33
Other tax 327
Foreign grants 857

Total expenditures 4,940

Recurrent expenditures 3,310

Consumption spending 1,805
Wages and salaries 1,419
Goods and services 387
Transfers to households 1,064
Interest payments 440
Domestic 322
Foreign 118
Capital investments 1,630
Domestic 322
Foreign 1,308
Balance -770
Ghana's 2007 Balance of Payments
Units: Millions of new Ghanaian Cedis (current prices)

Exported goods 4,181

Imported goods -7,118
Net services trade -470
Private transfers 2,001
Official transfers 857

Current account balance -548