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Harmonization of product classifications: A consistent time series of economic trade activities

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  • Christoph Baumgartner
  • Stjepan Srhoj
  • Janette F. Walde

Abstract

Firm-product data provide information for various research questions in international trade or innovation economics. However, working with this data requires harmonizing product classifications consistently over time to avoid internal validity issues. The researcher must consider product code changes in the classification systems over the observation period. Harmonization is required because classification systems like the EU classifications Combined Nomenclature (CN) for goods or the Prodcom for the production of manufactured goods undergo several changes. We have addressed this problem and developed an approach to harmonize product codes. This approach tracks product codes from 1995 to 2022 for CN and 2001 to 2021 for Prodcom. Additional years can be conveniently updated. We provide the harmonized product codes for CN and Prodcom in the selected period's first (or last) year. Our approach is summarized in an easy-to-use R package so that researchers can consistently track product codes for their period. We demonstrate the importance of harmonization using the micro-level trade data for Croatia as a case study. Our approach facilitates working with firm-product data, allowing the analysis of important research questions.

Suggested Citation

  • Christoph Baumgartner & Stjepan Srhoj & Janette F. Walde, 2022. "Harmonization of product classifications: A consistent time series of economic trade activities," Working Papers 2022-11, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2022-11
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    References listed on IDEAS

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    More about this item

    Keywords

    concordance; CN; HS; Prodcom; BEC;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis

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