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Task 3: Calculating round-by-round multiplier effects

2007 SAM for Ghana with 2 sectors

Units: Millions of old Ghanaian Cedis (current prices)

Factors

aagr anagr cagr cnagr fac hhd gov s-iaagr 7,070

anagr 17,926

cagr 606 957 4,226

cnagr 1,913 8,554 7,916 1,805 4,680

fac 4,551 8,416

hhd 12,967 1,387

gov 160 2,212 940

s-i 3,272 860

row 575 7,864

total 7,070 17,926 7,805 28,002 12,967 16,354 4,052 4,680

Input-output (IO) coefficients

Calculate the intermediate inputs required per unit of activity output

aagr anagr

cagr

cnagr 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 ROUND 3

agr

agr 0.01

nagr

agr

0.86

agr

nagr

nagr

agr 0.11

Activities Commodities Other accounts

Activities

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10

agr

agr

0.14 nagr

nagr

2.71

agr

nagr

nagr

0.62

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

A1: billion cedis

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

A2: billion cedis

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

A3: billion cedis

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

A4: billion cedis

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

A5: billion cedis

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

A6: billion cedis

Q7: What was the overall size of the indirect multiplier effect after 3 rounds?

A7: billion cedis

Q8: What was the overall impact of the shock after 3 rounds?

A8: billion cedis

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row total SAM legend7,070 aagr Activity - agriculture

17,926 anagr Activity - nonagriculture

2,016 7,805 cagr Commodity - agriculture

3,134 28,002 cnagr Commodity - nonagriculture

12,967 fac Factors - labor and capital

2,001 16,354 hhd Households - rural and urban

739 4,052 gov Government

548 4,680 s-i Saving/investment

8,439 row Rest of the world

8,439 total Column and row total

IMPORTANT:

Remember that we are only calculating backward production linkages in this Task.

This is the additional intermediate demand generated when a sector expands production

1. Calculate the first round effects by multiplying the direct increase in agricultural producti

by the respective IO coefficient for agriculture and nonagricultural intermediate inputs

2. Use the increase in production from the first round to calculate the increase in productio

in the second round.

3. Make sure that your results are the same as the values in blue next to the cell entries.

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4. Complete this flow-chart by linking previous round results to the coefficients in the IO tab

Do not just paste results into the cells

5. You should use cell references or links when answering the questions in red below.

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