Department of
Economic Studies,
University of
Dundee,
Dundee.
DD1 4HN
Dundee Discussion Papers
in Economics
Constructing a Social Accounting Matrix for
Libya
Jamal Kerwat, John Dewhurst and Hassan Molana
Working Paper
No. 223
January 2009
ISSN:1473-236X
CONSTRUCTING A SOCIAL ACCOUNTING MATRIX FOR LIBYA
Jamal Kerwat, John Dewhurst* and Hassan Molana
University of Dundee
January 2009
Abstract
In this paper a Social Accounting Matrix is constructed for Libya for the year 2000.
The procedure was divided into three steps. First, a macro SAM was constructed to
consistently capture and represent the macroeconomic framework of the Libyan
economy in 2000. Second, that macro SAM was disaggregated into a micro SAM
incorporating the accounts for individual activities, primary factors and the main
economic institutions. But the SAM obtained in this way was not balanced. So in the
final step we balanced the SAM using a cross-entropy procedure in General
Algebraic Modelling System (GAMS). This SAM integrates national income, input-
output, flow-of-funds, and foreign trade statistics into a comprehensive and
consistent dataset.
The lack of coherent time series data for Libya is a serious obstacle for applied
research that uses econometric analysis. Our main intension in constructing this
SAM has been one of providing benchmark data for economy-wide analysis using
CGE modelling for Libya.
Keywords: input-output table, social accounting matrix, national accounts, cross-
entropy
JEL Classification: Y1, O5
* Contact author: John Dewhurst, Economic Studies, University of Dundee, 3 Perth
Road, Dundee DD1 4