Gipuzkoa is a province of Spain and a historical territory of the autonomous community of the Basque Country.

A Social Accounting Matrix (SAM) represents flows of all economic transactions that take place within an economy (regional or national).

This chapter deals with the construction process of Guipúzcoa (Guipúzcoa is a province of the Basque country and is defined using the OECD‐refined typology as Urban Open Space SAM.This chapter focuses on issues specific to the construction and characteristics of the Guipúzcoa SAM.

• The first stage of the construction process involved aggregating sectors and commodities in both tables to the chosen level . Supply and use coefficients for each sector were then derived from the Basque tables, assuming that :i) the commodity supply and input use of activities in Guipúzcoa follow the same pattern as in the Basque region ; ii) the change in commodity mix/input requirements from 2005 (the Base year of the Guipúzcoa SAM) to 2008 (the year of the input output tables) is insignificant

• The next step on the construction process required the conversion of the tables into a bi‐regional structure delineating between rural and urban locations in Guipúzcoa.

The definition of rural and urban areas was based on population density at the municipality level.

Municipalities with a population density < 500 people per square kilometre were classified as

rural. Those with 500 or more people per square kilometre, urban municipalities.

Using study‐area specific data on agriculture  and inter‐institutional transactions, there are

four steps:Step1:Disaggregation of the Agriculture sec

tor. step

2:Disaggregation of the factor accounts.step3:Disaggregation of the household acco

unts.step4:Estimation of Inter‐

institutional flows.

•  Activity Accounts: Each production sector is represented in the rural and urban part of the SAM (even though their significance in each area may be very different), resulting in 30 sectors in total.

• Commodities:The thirteen commodity accounts in the Guipúzcoa SAM (see Table 7.4) reflect closely the choice of production sectors. Following the structure of the Basque SAM, two agricultural commodity types are distinguished – “agriculture” and “livestock”.   

Factors :four factors of production are distinguished in the Guipúzcoa SAM  two types of labour (skilled and unskilled), capital and land.

Households: Three different household groups are distinguished in the Guipúzcoa SAM: Urban households; Rural households; and Farm households.  

Other Accounts:In common with all of the RURAL ECMOD SAMs, a single government account, single ROW account and single Investment‐ savings account are distinguished.   

7.3.1 Gross Regional Domestic Prod

uct

Gross Regional Domestic Product (GRDP)

is the aggregate of gross value added

(GVA) of all resident producer units in the

The GRDP includes regional estimates on the three major sectors including their sub-sectors namely:

• Agriculture, Fishery and Forestry• Industry Sector• Mining and Quarrying  Manufacturing 

Construction  Electricity and Water• Service Sector• Transport, Communication and Storage 

Trade  Finance  Ownership of Dwellings and Real Estate  Private  Government Services

GDP per head in 2005 for Guipúzcoa is estimated at 26,235 euros.

Different production sectors in the Guipúzcoa e

onomy is considered in relation the contribution

of the sector to the total value of output genera

ed in the region, the number of FTE (Full Time 

quivalent) employees in the sector, and the con

ribution the sector makes to GRDP in the region.  

Model calibration consists of changing values of

model input parameters in an attempt to match

field conditions within some acceptable criteria.

Calibration task involves systematic adjustment

of model parameter estimates so that modeloutputs more accurately reflect externalbenchmarks

• Elasticities This includes: production elasticities and

household elasticities.• Closure rules  The choice of closure rules was selected so as to refl

ect the manner in which the case study economy operates which in turn reflects the size of the study area.  

• Exogenous parameters for the dynamic model  

The exogenous TFP growth rates were derived for the dynamic CGE model so as to show a slowing of growth in the region from 2005 to 2011 and then a gradual increase to 2020

• Baseline trajectory of GRDP The trajectories of the urban and rural areas 

are very similar, after slow growth to 2011  (0.98

% in 2011), GDP increases fairly gradually to 2020

 when the growth rate is 2.86%.  • TFP:Total Factor Productivity.It is a

measure of the efficiency of all inputs to a production process. Increases in FTP result usually from technological innovations or improvements.