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Measures of Prices and Price Competitiveness in International Trade in Manufactured Goods

In: International Economic Transactions: Issues in Measurement and Empirical Research

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  • Robert E. Lipsey
  • Linda Molinari
  • Irving B. Kravis

Abstract

The purpose of this paper is to present, and to explain the construction of, a set of price indexes relating to international trade in manufactured goods. These include: 1. Indexes of export prices for the U.S., Germany, and Japan, based on their weights, and indexes of competitors' prices for each of those countries based on the sane set of weights; 2. Indexes of domestic prices for the U. S., Germany, and Japan based on export weights; 3. Indexes for developed country exports of manufactures based on weights of developed country exports of manufactures to developing countries and of total developed country exports of manufactures, and indexes for exports of the U.S., Germany, and Japan on the sane sets of weights. The indexes for developed country exports make use of a method for estimating missing prices that takes account not only of contemporaneous price changes in the same country within the sane community groups, but also of price changes for the particular commodity in other countries. Comparisons are made between movements of domestic and export prices and between price indexes based on weights of early and late base years. In addition, an attempt is made to correct the price indexes for changes in the quality of some manufactured goods not usually taken account of in measures of export or import prices.
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Suggested Citation

  • Robert E. Lipsey & Linda Molinari & Irving B. Kravis, 1991. "Measures of Prices and Price Competitiveness in International Trade in Manufactured Goods," NBER Chapters, in: International Economic Transactions: Issues in Measurement and Empirical Research, pages 144-199, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:8430
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    References listed on IDEAS

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    Cited by:

    1. Corinne Land & Jaime R. Marquez & Charles P. Thomas, 2012. "International relative price levels: a look under the hood," International Finance Discussion Papers 1055, Board of Governors of the Federal Reserve System (U.S.).
    2. Swift, Robyn, 2004. "The pass-through of exchange rate changes to the prices of Australian exports of dairy and livestock products," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 1-27.
    3. Aw, Bee Yan & Batra, Geeta & Roberts, Mark J., 2001. "Firm heterogeneity and export-domestic price differentials: A study of Taiwanese electronics products," Journal of International Economics, Elsevier, vol. 54(1), pages 149-169, June.
    4. Michael Freudenberg & Harald Trabold, 1999. "Vertikale Produktdifferenzierung im Außenhandel: Theoretische Grundlagen und empirischer Befund," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 68(3), pages 356-385.
    5. Jayant Menon, 1993. "Import Price and Activity Elasticities for the MONASH Model: Johansen FIML Estimation of Cointegration Vectors," Centre of Policy Studies/IMPACT Centre Working Papers ip-58, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Barber, Brad M. & Click, Reid W. & Darrough, Masako N., 1999. "The impact of shocks to exchange rates and oil prices on U.S. sales of American and Japanese automakers," Japan and the World Economy, Elsevier, vol. 11(1), pages 57-93, January.
    7. Yoshida, Yushi, 2010. "New evidence for exchange rate pass-through: Disaggregated trade data from local ports," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 3-12, January.
    8. Athukorala, Prema-chandra & Khan, Fahad, 2016. "Global production sharing and the measurement of price elasticity in international trade," Economics Letters, Elsevier, vol. 139(C), pages 27-30.
    9. Jacqueline Dwyer & Christopher Kent & Andrew Pease, 1993. "Exchange Rate Pass-through: The Different Responses of Importers and Exporters," RBA Research Discussion Papers rdp9304, Reserve Bank of Australia.
    10. Athukorala, Premachandra & Menon, Jayant, 1995. "Modeling manufactured imports: Methodological issues with evidence from Australia," Journal of Policy Modeling, Elsevier, vol. 17(6), pages 667-675, December.
    11. Lourdes Martín & Diego Rodríguez, 2004. "Pricing to market at firm level," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(2), pages 302-320, June.
    12. Magnus Blomström & Linda S. Goldberg, 2001. "Introduction to "Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey"," NBER Chapters, in: Topics in Empirical International Economics: A Festschrift in Honor of Robert E. Lipsey, pages 1-14, National Bureau of Economic Research, Inc.
    13. Roberto Cellino & Anna Soci, 2002. "Pop competitiveness," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 55(220), pages 71-101.
    14. Yushi Yoshida, 2009. "Market Share and Exchange Rate Pass-through:Competition among Exporters of the Same Nationality," Discussion Papers 37, Kyushu Sangyo University, Faculty of Economics.
    15. Sean Fahle & Jaime R. Marquez & Charles P. Thomas, 2008. "Measuring U.S. international relative prices: a WARP view of the world," International Finance Discussion Papers 917, Board of Governors of the Federal Reserve System (U.S.).
    16. Linda S. Goldberg, 1990. "Nominal Exchange Rate Patterns: Correlationswith Entry, Exit, and Invesment in U.S. Industry," NBER Working Papers 3249, National Bureau of Economic Research, Inc.

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