FoodIMA Workshop – Minutes

Date and place:October 5 and October 6, 2007;

CERGE-EI, Prague, Czech Republic

Participants of the main part of the workshop (Saturday, October 6)

Prof. Kresimir Zigic, CERGE-EI, Czech Republic

Dr. Efstratios Loizou, School of Agriculture, Technological Educational Institute of Western Macedonia, Greece

Dr. Ales Kuhar, University of Ljubljana, Slovenia

Antoaneta Golemanova, Msc., University of Ljubljana, Slovenia

Dr. Vilem Semerak, CERGE-EI, Czech Republic

Ms. Evangelia Vourvachaki, LSE, UK (visiting at CERGE-EI, Czech Republic)

Day 1 (October 5) –Initial Informal Meeting with Dinner

Dr. Loizou, Dr. Kuhar and Dr. Golemanova arrived to Prague during the morning of October 5th. The programme of the workshop started by an informal dinner at Kogo Ristorante at 7 – 9 p.m.

During this dinner the participants discussed last-minute technical issues related to the meeting planned for the next day,

Day 2 (October 6) – Main Part of the Workshop: Presentations

The main part of the workshop took place on Saturday, October 6 in the building of CERGE-EI in Prague.

The programme of the main part of the workshop was as follows:

10:15 – 10:30Registration of the participants, orientation in the CERGE-EI building

10:30 – 10:40Start of the workshop, welcoming speech of Prof. Zigic. Prof Zigic also provided a brief overview of the research project.

10:45 – 13:00Presentation byDr. Loizou: “Analysis of WP6 with specification to task 6.1 and presentation of the regional Input-Output methodology basic issues“

and discussion of the presentation – see the next section for details

13:00 – 13:10 Coffee break

12:10 – 13:30Discussion of administrative issues (contracts for reimbursement of the travel costs and the costs of accommodation)

13:30 – 14:30Formal conclusion of the meeting, joint lunch at Bredovsky Dvur restaurant

1.Presentation of Dr. Loizou and Main Discussion Points

The presentation of Dr. Loizou consisted of two parts. The first part focused on the research project, its schedule and division of labour; the second dealt with the methodology of the input-output analysis at regional level.

1.1 Research project

Dr. Loizou opened his presentation with a brief review of the project methodology, i.e. the use of comparable regional-level IO approach for the analysis of the socioeconomic effects of the food supply chain in remote rural areas applied on Greece, Germany, and the Czech Republic. The regions to be analyzed will be regions recognized as such according to NUTS2 classification, one region from each country is to be analyzed. The selection of the region should depend on its remoteness and the role of food industry in the region. Dr. Loizou then went on presenting the three main parts of the project:

Task 6.1: Definition of a Hybrid Comparable Regional Input-Output Scheme

Task 6.2: Construction of Regional I-O Models, Description of the Structure of the Selected Rural Areas and Analysis of the Framework of the Impact Indicators.

Task 6.3: Application of the Theoretical Framework to the Selected Regions for the Examination of the Socioeconomic Importance of the Food Sector.

Corresponding to the three tasks there are three types of deliverables of the project. Dr. Loizou presented his and Dr. Mattas’ original outline, however the scheduling of the deliverables and deadlines have been modified in the subsequent discussion. This is the resulting version of the schedule and responsibilities for deliverables and related tasks:

Deliverable 6.1 – A theoretical framework for the construction of a complete regional I-O model and definition of a hybrid comparable regional I-O scheme.

-This should be delivered by month 16 of the project by responsible persons P1 and P6. Dr. Loizou will be the main responsible person for this part of the project.

-This part will also include the development of the methodological framework of linkage coefficients (originally part of WP 6.2, now moved to WP 6.1)

The issue of the selection of the regions for analysis and availability of data have been discussed as well during the part of the presentation.

-The NUTS2 level regions will be used for the purpose of this project. While the appropriate region for Greece has already been selected (Ipirus region), the regions for Germany and the Czech Republic have not been chosen yet. The Czech participants have been asked to start with selection of their region in coordination with German participants.

-As far as the model and input data are concerned, the following has been agreed:

  • Open model preferred
  • Food sector should be disaggregated as much as possible
  • Ms Golemanova suggested the possibility of using a EU Klems database with data on employment in economic sectors
  • Symmetric IO tables are necessary. The difference between make/use and symmetric tables has been clarified. Czech participants have been asked to check the availability of the symmetric tables. Czech participants are also responsible to contact German team in respect to availability of the SIO for Germany and to provide Czech IO table.
  • Coherent treatment of imports necessary or this is so-called Import matrix, prepared by National Accounts Department

Deliverable 6.2: A report presenting the constructed regional I-O Tables along with the linkage coefficients and the eliminating process.

- This part includes construction of the regional I-O tables with the use of GRIT technique

- Application of the regional tables for the description of the economic structure of the three regions

- The most important sectors by the means of forward/backward linkages should be identified for each of the regions (originally part of WP 6.3, moved to WP 6.2). It has also been suggested that backward linkages will be used rather than the forward linkages.

- Exogenization of the sector (which was not originally in the technical annex) was suggested by Dr. Loizou as a viable option with the reference to Roberts (1994) and Papadas and Dahl (1999).

- The delivery date has been set to month 24 of the project, Dr. Kuhar will be responsible for this part of the project.

Deliverable 6.3: A synthetic report analyzing the socioeconomic importance of the food supply chain in the selected remote rural areas

- The delivery date has been set to month 30 of the project, responsible will be partner P6. However, delivery dates (April or May) are yet to be discussed at the next workshop.

Other issues discussed during this part of the presentation:

- As part of the original planned output of WP 6.3 was moved to part 6.2, the most important remaining task is the definition of scenarios. This task has been assigned to Prof. Zigic (with the help of V. Semerak and possibly other participants), while Dr. Kuhar will be responsible for building the three regional IO models (Czech, Germany and Greece) and multiplier analysis. Partner P6 is responsible for impact analysis.

1.2 Methodology of the regional input-output analysis

During this part of the presentation Dr. Loizou provided general introduction to the traditional input-output analysis, explained the differences various types of input-output tables as well as the reasons why a particular type of table (symmetric input-output table) should be used as input for the analysis. Dr. Loizou continued with the presentation of the methods that can be used for the creation of regional IO tables. He paid special attention the GRIT method which is to be used for the FoodIMA project. The presentation concluded with the discussion of the necessary input data and the level of disaggregation of the data.

Conclusions and Main Immediate Tasks for the Participants

- Compared to the original objectives, it was suggested that the analysis of the role of the food sector should be done primarily only on the regional basis.

- Changes in the scheduling of activities and their allocation to parts WP 6.1-WP 6.3 have been made. Specifically:

-development of the methodological framework of linkage coefficients moved from WP 6.2 to WP 6.1

-identification of forward/backward linkages moved from WP 6.3 to WP 6.2

Delivery dates and responsibilities have been set:

WP 6.1 – Dr. Loizou, delivered in month 16

WP 6.2 – Dr. Kuhar, delivered in month 24

WP 6.3 – month 6.3. Prof. Zigic responsible for scenarios, Dr. Kuhar for the model (application of the vector of shocks developed by Prof. Zigic onto the multiplier framework)

As far as the main immediate tasks are concerned:

(1)Identification of the regions that will be analyzed. While this has been done for Greece, the appropriate regions of the CzechRepublic and Germany are yet to be selected. Czech participants (V. Semerak) should start with the selection of the appropriate region. German participants should be contacted and asked to identify a suitable region as well.

(2)Continue with collection of the data – both the IO tables (it was emphasized by Ms Golemanova that symmetric and not simply make/use tables are important), import matrix and additional regional and national data (esp. employment, gross value added). Prof.Zigic has been asked to press the participants to get the data as soon as possible. It is also important to ask the National Accounts Departments what kind of employment survey (data) they use when prepare symmetric IOT, usually it helps for getting better location quotients.

- Specifically, Czech participants have been asked by Ms Golemanova to try to contact the relevant experts in Czech Statistical Office who seem to have published less detailed symmetric I-O tables on the CzechRepublic.

(3)All necessary data for regionalization procedure and multiplier analysis are to be provided by the Czech, German and Greek teams involved.

(4)Consider the preparation of the next meeting if found necessary

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