Exporting Deflation? Chinese Exports and Japanese Prices
In: China's Growing Role in World Trade
AbstractBetween 1992 and 2002, the Japanese Import Price Index (IPI) registered a decline of almost 9 percent and Japan entered a period of deflation. We show that much of the correlation between import prices and domestic prices was due to formula biases. Had the IPI been computed using a pure Laspeyres index like the CPI, the IPI would have hardly moved at all. A Laspeyres version of the IPI would have risen 1 percentage point per year faster than the official index. Second we show that Chinese prices did not behave differently from the prices of other importers. Although Chinese prices are substantially lower than the prices of other exporters, they do not exhibit a differential trend. However, we estimate that the typical price per unit quality of a Chinese exporter fell by half between 1992 and 2005. Thus the explosive growth in Chinese exports is attributable to growth in the quality of Chinese exports and the increase in new products being exported by China.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
This chapter was published in:
This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10459.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- David Weinstein & Christian Broda, 2008. "Exporting deflation? Chinese exports and Japanese prices," Working Paper Series 2008-29, Federal Reserve Bank of San Francisco.
- David Weinstein & Christian Broda, 2008. "Exporting Deflation? Chinese Exports and Japanese Prices," NBER Working Papers 13942, National Bureau of Economic Research, Inc.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- F1 - International Economics - - Trade
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christian Broda & David E. Weinstein, 2004.
"Globalization and the Gains from Variety,"
NBER Working Papers
10314, National Bureau of Economic Research, Inc.
- David Weinstein & Christian Broda, 2004. "Globalization and the Gains from Variety," 2004 Meeting Papers 530, Society for Economic Dynamics.
- David E. Weinstein & Christian Broda, 2004. "Globalization And The Gains From Variety," Econometric Society 2004 Latin American Meetings 327, Econometric Society.
- David Weinstein & Christian Broda, 2004. "Globalization and the Gains from Variety," Econometric Society 2004 North American Summer Meetings 508, Econometric Society.
- Christian Broda & David Weinstein, 2004. "Globalization and the gains from variety," Staff Reports 180, Federal Reserve Bank of New York.
- Paul Bergin & Rob Feenstra, 2008. "Pass-through of exchange rates and competition between Mexico and China," Proceedings, Board of Governors of the Federal Reserve System (U.S.).
- Christian Broda & David E. Weinstein, 2007.
"Defining Price Stability in Japan: A View from America,"
NBER Working Papers
13255, National Bureau of Economic Research, Inc.
- Christian Broda & David E. Weinstein, 2007. "Defining Price Stability in Japan: A View from America," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 25(S1), pages 169-206, December.
- Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March.
- Sawhney, Aparna & Kahn, Matthew E., 2012.
"Understanding cross-national trends in high-tech renewable power equipment exports to the United States,"
Elsevier, vol. 46(C), pages 308-318.
- Aparna Sawhney & Matthew E. Kahn, 2011. "Understanding Cross-National Trends in High-Tech Renewable Power Equipment Exports to the United States," NBER Working Papers 17217, National Bureau of Economic Research, Inc.
- Auer, Raphael & Fischer, Andreas M, 2008.
"The Effect of Trade with Low-Income Countries on U.S. Industry,"
CEPR Discussion Papers
6819, C.E.P.R. Discussion Papers.
- Raphael Auer & Andreas M. Fischer, 2008. "The effect of trade with low-income countries on U.S. industry," Globalization and Monetary Policy Institute Working Paper 14, Federal Reserve Bank of Dallas.
- Maurice Obstfeld, 2009. "Time of Troubles: The Yen and Japan's Economy, 1985-2008," NBER Working Papers 14816, National Bureau of Economic Research, Inc.
- Fu, Xiaolan & Kaplinsky, Raphael & Zhang, Jing, 2012. "The Impact of China on Low and Middle Income Countries’ Export Prices in Industrial-Country Markets," World Development, Elsevier, vol. 40(8), pages 1483-1496.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.