Nesting a city input–output table in a multiregional framework: a case example with the city of Bogota

• Main Authors: Fabio Monsalve, Mateo Ortiz, María-Ángeles Cadarso, Enrique Gilles, Jorge Zafrilla, Luis-Antonio López
• Format: Article
• Language: English
• Published: SpringerOpen 2020-02-01
• Series: Journal of Economic Structures
• Subjects: Nesting; Multiregional input–output model; Cities; Bogota; ICIO
• Online Access: https://doi.org/10.1186/s40008-020-0185-8

Abstract In parallel with the increasing availability of multiregional input–output (MRIO) tables, there has been a growing concern on IO modelling at lower levels of spatial disaggregation, to reflect the particular features of cities better. The urbanization process is one of the salient characteristics of the current stage of globalization, so it is imperative to know more about their global economic, social and environmental impacts. MRIO initiatives are defined at the country level, which means that we are potentially losing some key information about cities and their economic structures. In this paper, we fill this gap by putting together the IOT for the city of Bogota (Colombia) into the well-known OECD’s ICIO database. After describing the structure of both IOTs, we document the harmonization and nesting procedures in a step by step approach, focusing on the main challenges and assumptions that we have to make. Additionally, a case study has been carried out to weight the level of integration of Bogota in global value chains. The analysis proves the low level of global integration: the bulk of the valued-added generated in Bogota due to the city’s exports comes from the economy of the rest of the country and presents a significant deficit in its value-added balance. Apart, we hope it could shed some light to conduct similar adaptations for other cities.