Introduction

Abstract

This study undertakes the construction of an accounting framework for the world economy, referred to as the world accounting matrix (WAM), with special emphasis on developing countries. The WAM allows for the consistent presentation of international trade and finance figures, in relation to domestic saving and investment, for groups of countries. A WAM consists of four main submatrices or blocs: (1) current account transactions by origin and destination, (2) capital account transactions by origin and destination, (3) gross domestic investment, and (4) gross national saving.¹ The four main blocs are supplemented with tables for stocks of international assets and liabilities and for GNP.