\documentclass[12pt,a4paper]{article} \usepackage[margin=2.5cm]{geometry} \usepackage{graphicx} \usepackage{booktabs} \usepackage{multirow} \usepackage{longtable} \usepackage{array} \usepackage{amsmath} \usepackage{amssymb} \title{Supplementary Material} \begin{document} \maketitle \section*{Supplementary Material} This supplementary document contains the appendix tables, model equations, variable definitions, parameter descriptions, and additional materials supporting the manuscript. \section*{Appendix} \setcounter{table}{0} \renewcommand{\thetable}{A\arabic{table}} \begin{table}[h] \textbf{AppendixA.Model Variables} \textbf{A1.Defining Model System } \begin{tabular}{l p{10cm}} \hline \textbf{Variable} & \textbf{Description} \\ \hline $Y(i)$ & Composite factor \\ $F(h,i)$ & h-th factor input used by the i-th firm \\ $X(i,j)$ & Intermediate input \\ $P(i,k)$ & Total domestic sales \\ $Z(j)$ & Output of the j-th good \\ $X_p(i)$ & Household consumption of the i-th good \\ $X_g(i)$ & Government consumption \\ $X_v(i)$ & Investment demand \\ $E(i)$ & Exports \\ $M(i)$ & Imports \\ $Q(i)$ & Armington composite good \\ $DXs(i)$ & Domestic sector supply function \\ $DXd(j)$ & Domestic good demand function \\ $pf(h)$ & H-th factor price \\ $py(l)$ & Composite factor price \\ $pz(i)$ & Supply price of the good \\ $pm(i)$ & Import price in local currency \\ $pq(i)$ & Armington composite good price \\ $pe(i)$ & Export price in local currency \\ $pd(i)$ & Domestic production price \\ $\epsilon$ & Exchange rate \\ $S_p$ & Private saving \\ $S_g$ & Government saving \\ $S_c$ & Company saving \\ $S_e$ & Foreign saving \\ $GX$ & Total goverment consumption \\ $R$ & HOH subsidy revenues \\ $BI$ & HOH revenues \\ $FH(h)$ & HOH factor revenues \\ $Td$ & Direct tax rate \\ $T(i,k)$ & Production tax \\ $SUB(i)$ & Subsidy \\ $TM(k)$ & Import tax rate \\ $UU$ & Utility (fictitious) \\ \hline \end{tabular} \end{table} \textbf{AppendixB. Basic CGE Equations Based on GAMS} \textbf{B1. International Trade} \begin{align} p_i^e &= \varepsilon p_i^{We} \quad \forall i \\ p_i^m &= \varepsilon p_i^{Wm} \quad \forall i \\ \sum_i p_i^{We} E_i + Sf &= \sum_i p_i^{Wm} M_i \end{align} \setcounter{equation}{3} \textbf{B2. Armington Composite} \begin{align} Q_i &= \gamma_i \left( \delta_{mi} M_i^{\eta_i} + \delta_{di} D_i^{\eta_i} \right)^{\frac{1}{\eta_i}} \quad \forall i \\ M_i &= \left[ \frac{\gamma_i^{\eta_i} \delta_{mi} p_i^q}{(1+\tau_i^m)\,p_i^m} \right]^{\frac{1}{1-\eta_i}} Q_i \quad \forall i \\ D_i &= \left[ \frac{\gamma_i^{\eta_i} \delta_{di} p_i^q}{p_i^d} \right]^{\frac{1}{1-\eta_i}} Q_i \quad \forall i \end{align} \setcounter{equation}{6} \textbf{B3. Transformation between exports and domestic goods} \begin{align} Z_i &= \theta_i \left( \xi_{ei} E_i^{\phi_i} + \xi_{di} D_i^{\phi_i} \right)^{\frac{1}{\phi_i}} \quad \forall i \\ E_i &= \left[ \frac{\theta_i^{\phi_i} \xi_{ei} (1+\tau_i^z) p_i^z}{p_i^e} \right]^{\frac{1}{1-\phi_i}} Z_i \quad \forall i \\ D_i &= \left[ \frac{\theta_i^{\phi_i} \xi_{di} (1+\tau_i^z) p_i^z}{p_i^d} \right]^{\frac{1}{1-\phi_i}} Z_i \quad \forall i \end{align} \setcounter{equation}{9} \textbf{B4. Domestic Production} \begin{align} Y_j &= b_j \prod_h F_{h,j}^{\beta_{h,j}} \quad \forall j \\ F_{h,j} &= \frac{\beta_{h,j} p_j^y}{p_h^f} \, Y_j \quad \forall h,j \\ X_{i,j} &= ax_{i,j} Z_j \quad \forall i,j \\ Y_j &= ay_j Z_j \quad \forall j \\ p_j^z &= ay_j p_j^y + \sum_i ax_{i,j} p_i^q \quad \forall j \end{align} \setcounter{equation}{14} \textbf{B5.Goverment} \begin{align} T^d &= \tau^d \sum_h p_h^f FF_h \\ T_j^z &= \tau_j^z \, p_j^z \, Z_j \quad \forall j \\ T_i^m &= \tau_i^m \, p_i^m \, M_i \quad \forall i \end{align} \setcounter{equation}{17} \textbf{B6.Investment and saving} \begin{align} X_i^v &= \frac{\lambda_i}{p_i^q} \left( S^p + S^g + \varepsilon S^f \right) \quad \forall i \\ S^p &= ss^p \sum_h p_h^f FF_h \\ S^g &= ss^g \left( T^d + \sum_j T_j^z + \sum_j T_j^m \right) \end{align} \setcounter{equation}{20} \textbf{B7.Household} \begin{align} X_i^p &= \frac{\alpha_i}{p_i^q} \left( \sum_h p_h^f FF_h - S^p - T^d \right) \quad \forall i \end{align} \clearpage \noindent\textbf{Appendix C. Overview of Intermediate Input Structure} \vspace{0.5em} \noindent\textbf{C1. Sectoral Intermediate Input Data} \begin{table}[h] \centering \small \begin{tabular}{l|cccc|cccc|c} \hline \multirow{2}{*}{Sector} & \multicolumn{4}{c|}{Sec. Intm. Inp. (Base)} & \multicolumn{4}{c|}{Sec. Intem. Inp. (Scen.)} & \multirow{2}{*}{Change} \\ \cline{2-9} & Inds. & Serv.& Engy. & Trans. & Inds. & Serv. & Enegy. & Trans. & \\ \hline Inds. & 10.335 & 3.928 & 1.282 & 404 & 10.335 & 3.944 & 1.284 & 365 & 0 \\ Serv. & 1.178 & 4.698 & 167 & 492 & 1.178 & 4.718 & 168 & 445 & 0.42 \\ Engy. & 755 & 1.164 & 1.444 & 598 & 755 & 1.169 & 1.445 & 540 & 0.09 \\ Trans. & 339 & 650 & 34 & 790 & 339 & 653 & 34 & 714 & -9.56 \\ \hline Total & 12.607 & 10.441 & 2.928 & 2.283 & 12.607 & 10.485 & 2.930 & 2.065 & -0.60 \\ \hline \end{tabular} \end{table} \clearpage \noindent\textbf{Appendix D. Overview of Factor Use in the Economy} \vspace{0.4em} \noindent\textbf{D1. Sectoral Factor Use Intensities} \vspace{0.6em} \begin{table}[h] \raggedright \small \begin{tabular*}{\textwidth}{@{\extracolsep{\fill}} l l c c c} \hline & Sec./Fac. &Lab. & Cap. & Tot. \\ \hline \multirow{4}{*}{Fac. Use (Base)} & Inds. & 1.892 & 5.449 & 7.340 \\ & Serv. & 5.335 & 8.538 & 13.873 \\ & Engy. & 128 & 619 & 747 \\ & Trans. & 401 & 2.053 & 2.454 \\ \hline \multirow{4}{*}{Fact. Use (Scen)} & Inds. & 1.892 & 5.449 & 7.340 \\ & Serv. & 5.357 & 8.574 & 13.931 \\ & Engy. & 128 & 620 & 748 \\ & Trans. & 440 & 2.255 & 2.695 \\ \hline \multirow{4}{*}{Fac. Intenst.} & Inds. & 25.8 & 74.2 & 100 \\ & Serv. & 38.5 & 61.5 & 100 \\ & Engy. & 17.2 & 82.8 & 100 \\ & Trans. & 16.3 & 83.7 & 100 \\ \hline \multirow{1}{*}{Tot. Fac. Intenst. (Base)} & Tot. & 31.7 & 68.3 & 100 \\ \hline \multirow{1}{*}{Tot. Fac. Intenst. (Scen.)} & Total & 31.6 & 68.4 & 100 \\ \hline \end{tabular*} \end{table} \end{document}