Reliable quantitative analysis of sectoral and macro-economic policy requires sound data and appropriate analytical tools, as encompassed in the 2005-06 Ethiopia Social Accounting Matrix (SAM) presented in this paper. This SAM provides a coherent, detailed data base on production, incomes, consumption, investment, external trade and other flows in the economy. It also forms the heart of various analytical models including SAM-based fixed price multiplier models and flexible price computable general equilibrium (CGE) models. An additional advantage of the SAM is that it allows the generation of various economic indicators that can assist policy making. Thus, it is hoped that the creation and dissemination of this SAM will open new vistas for economic research on Ethiopia, as well as benefit economic policy making.

 

The 2005-06 Ethiopia SAM documented here contains 256 separate accounts and is the first comprehensive SAM for Ethiopia. It was prepared as part of The Data Systems and Economy-Wide Modeling to Support Policy Analysis in Ethiopia projectof EDRI and the Institute of Development Studies (IDS), Sussex, a project with three core objectives: 1) To develop a comprehensive data system, including the creation and regular update of extensive economy-wide databases and a host of other economic indicators; 2) To construct various structural, economy-wide and reduced form empirical models; and 3) To build local capacity to ensure sustainability.

 

The construction of the SAM involved a team of researchers led by the project’s resident coordinator, Hashim Ahmed of EDRI, and Professor Sherman Robinson of the Institute of Development Studies - Sussex, an international authority in the area of policy-oriented economy-wide modeling. A team of researchers and analysts at the Trade and Macro-economic Policy Unit of EDRI compiled data from various sources and conducted the bulk of the statistical work in constructing the SAM. Dirk Willenbockel, Research Fellow of the Institute of Development Studies (IDS) and Paul Dorosh, Senior Research Fellow of the International Food Policy Research Institute (IFPRI) also provided technical assistance.

 

Finally, thanks are due to the Netherlands government and the European Commission for financial support to the project through pooled funds administered by the United Nations Development Programme (UNDP).

 

 

Newai Gebreab

Executive Director of EDRI