Concepts, Definitions and Classifications for the World Accounting Matrix

Abstract

The World Accounting Matrix (WAM) is based on the concept that related variables — international trade, financial flows and stocks, and domestic savings and investment — should be presented in one framework that explicitly takes the relationships between the variables into account. The WAM has its conceptual roots in the various accounting systems that have been developed for national economies. Each of these systems describe specific aspects of national economies. When combined in one system, they are referred to as integrated data frameworks. The most widely-used example of an integrated data framework is the United Nations System of National Accounts (SNA) which is designed for application at the country level. In the WAM, the principles of integrated data frameworks for national economies are applied at the level of the world economy, for country groups.