IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/3442.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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.

Suggested Citation

  • Robert E. Lipsey & Linda Molinari & Irving B. Kravis, 1990. "Measures of Prices and Price Competitiveness in International Trade in Manufactured Goods," NBER Working Papers 3442, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:3442
    Note: ITI IFM
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w3442.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:ucp:bknber:9780226304557 is not listed on IDEAS
    2. Nancy D. Ruggles, 1974. "The Role of the Computer in Economic and Social Research in Latin America," NBER Books, National Bureau of Economic Research, Inc, number rugg74-1.
    3. Morris Goldstein & Mohsin S. Khan, 2017. "Income and Price Effects in Foreign Trade," World Scientific Book Chapters, in: TRADE CURRENCIES AND FINANCE, chapter 1, pages 3-81, World Scientific Publishing Co. Pte. Ltd..
    4. Kenichi Ohno, 1989. "Export Pricing Behavior of Manufacturing: A U.S.: Japan Comparison," IMF Staff Papers, Palgrave Macmillan, vol. 36(3), pages 550-579, September.
    5. Dornbusch, Rudiger, 1987. "Exchange Rates and Prices," American Economic Review, American Economic Association, vol. 77(1), pages 93-106, March.
    6. Oswald Angermann, 1980. "External Terms Of Trade Of The Federal Republic Of Germany Using Differing Methods Of Deflation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 26(4), pages 367-385, December.
    7. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1.
    8. Sven W. Arndt & J. David Richardson, 1987. "Real-Financial Linkages Among Open Economies," NBER Working Papers 2230, National Bureau of Economic Research, Inc.
    9. Baldwin, Richard, 1988. "Hyteresis in Import Prices: The Beachhead Effect," American Economic Review, American Economic Association, vol. 78(4), pages 773-785, September.
    10. repec:bla:revinw:v:26:y:1980:i:4:p:367-85 is not listed on IDEAS
    11. Robert Summers, 1973. "International Price Comparisons Based Upon Incomplete Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(1), pages 1-16, March.
    12. Bushe, Dennis M & Kravis, Irving B & Lipsey, Robert E, 1986. "Prices, Activity, and Machinery Exports: An Analysis Based on New Price Data," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 248-255, May.
    13. Kravis, Irving B & Lipsey, Robert E, 1982. "Prices and Market Shares in the International Machinery Trade," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 110-116, February.
    14. Robert E. Lipsey, 1963. "Price and Quantity Trends in the Foreign Trade of the United States," NBER Books, National Bureau of Economic Research, Inc, number lips63-1.
    15. Richard C. Marston, 1989. "Pricing to Market in Japanese Manufacturing," NBER Working Papers 2905, National Bureau of Economic Research, Inc.
    16. Irving B. Kravis & Robert E. Lipsey, 1971. "Price Competitiveness in World Trade," NBER Books, National Bureau of Economic Research, Inc, number krav71-1.
    17. Robert E. Lipsey, 1963. "Introduction to "Price and Quantity Trends in the Foreign Trade of the United States"," NBER Chapters, in: Price and Quantity Trends in the Foreign Trade of the United States, pages 3-7, National Bureau of Economic Research, Inc.
    18. John Norsworthy & Show-Ling Jang, 1993. "Cost Function Estimation of Quality Change in Semiconductors," NBER Chapters, in: Price Measurements and Their Uses, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael M. Knetter, 1992. "Exchange Rates and Corporate Pricing Strategies," NBER Working Papers 4151, National Bureau of Economic Research, Inc.
    2. Webber, A., 1999. "Dynamic and Long Run Responses of Import Prices to the Exchange Rate in the Asia-Pacific," Economics Working Papers WP99-11, School of Economics, University of Wollongong, NSW, Australia.
    3. Chang, Byoung-Ky, 1999. "Three essays on imperfect competition and exchange rate pass-through in the presence of multiple exchange rates," ISU General Staff Papers 1999010108000013554, Iowa State University, Department of Economics.
    4. Dale, Charles & Bailey, Victor & Baxter, Timothy & King, Elizabeth, 1981. "Measuring export prices," MPRA Paper 46342, University Library of Munich, Germany.
    5. Lucas dos Santos Lourenço & Claudio Roberto Fóffano Vasconcelos, 2019. "Impacts of exchange rate non-linearity on Brazilian foreign trade," International Economics and Economic Policy, Springer, vol. 16(4), pages 679-699, October.
    6. Aruna Kumar Dash & V. Narasimhan, 2011. "Exchange Rate Pass-through," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 12(1), pages 1-23, March.
    7. Jayant Menon, 1994. "Flexible Exchange Rates and Traded Goods Prices: A Theory of the Short-Run," Centre of Policy Studies/IMPACT Centre Working Papers g-108, Victoria University, Centre of Policy Studies/IMPACT Centre.
    8. Yunus Aksoy & Hanno Lustig, 2007. "Exchange Rates, Prices And International Trade In A Model Of Endogenous Market Structure," Manchester School, University of Manchester, vol. 75(2), pages 160-192, March.
    9. Jeffrey Frankel & David Parsley & Shang-Jin Wei, 2012. "Slow Pass-through Around the World: A New Import for Developing Countries?," Open Economies Review, Springer, vol. 23(2), pages 213-251, April.
    10. Pavel Kadochnikov, 2006. "An Analysis of Import Substitution in Russia after the 1998 Crisis," Research Paper Series, Gaidar Institute for Economic Policy, issue 95, pages 148-148.
    11. Tapiwa D. Karoro & Meshach J. Aziakpono & Nicolette Cattaneo, 2009. "Exchange Rate Pass‐Through To Import Prices In South Africa: Is There Asymmetry?1," South African Journal of Economics, Economic Society of South Africa, vol. 77(3), pages 380-398, September.
    12. Ayoub Yousefi, 2000. "Merchandise Trade Balances of Less Developed Countries and Exchange Rate of the U.S. Dollar: Cases of Iran, Venezuela & Saudi Arabia," Working Papers 00002, University of Waterloo, Department of Economics, revised Feb 2000.
    13. Sabiston, David R., 2001. "Le pass-through du taux de change," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(3), pages 425-454, septembre.
    14. John Devereux & Zadia M. Feliciano, 2013. "Robert E. Lipsey," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(2), pages 375-380, June.
    15. Hernán Rincón & Édgar Caicedo & Norberto Rodríguez, 2007. "Exchange rate pass-through effects: a disaggregate analysis of Colombian imports of manufactured goods," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 25(54), pages 90-121, June.
    16. Merih Uctum, 2003. "Pricing‐to‐Market: the Japanese Experience with a Falling Yen and the Asian Crisis," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 360-378, May.
    17. David C. Parsley, 2004. "Pricing in International Markets: a “Small‐country” Benchmark," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 509-524, August.
    18. Frederic S. Mishkin, 2008. "Exchange Rate Pass-Through And Monetary Policy," NBER Working Papers 13889, National Bureau of Economic Research, Inc.
    19. 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.
    20. Martin Falk & Rahel Falk, 2000. "Pricing to Market of German Exporters: Evidence from Panel Data," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 27(1), pages 21-46, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:3442. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.