Quality Change and other Influences on Measures of Export Prices of Manufactured Goods and the Terms of Trade between Primary Products and Manufacture
AbstractMeasures of long term trends in world export prices of manufactured goods and in the terms of trade between manufactured goods and primary products are sensitive to the choice of country weights and of base periods and, most important of all, the treatment of quality change. Later base periods and higher weights for rapidly growing exporters, such as Japan or the newly industrializing East Asian countries, are associated with lower estimates of the long-term increase in prices. Conservative estimates of the bias in the most commonly used measure of export prices of manufactured products, the United Nations export unit value index for manufactures, suggest that this measure overstates the long-run rise in manufactured goods prices by more than half of one per cent per year, probably one per cent or more. If this is the case, there has been no long term trend toward rising prices of manufactures relative to primary products. However, no conceivable estimate of bias in measures of manufactured goods prices would reverse the picture of declining relative primary product prices during the 1980s.
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.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4671.
Date of creation: Mar 1994
Date of revision:
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
Find related papers by JEL classification:
- E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
- F10 - International Economics - - Trade - - - General
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.:
- Dani Rodrik, 1994.
"Industrial Organization and Product Quality: Evidence from South Korean and Taiwanese Exports,"
in: Empirical Studies of Strategic Trade Policy, pages 195-210
National Bureau of Economic Research, Inc.
- Dani Rodrik, 1988. "Industrial Organization and Product Quality: Evidence From South Korean and Taiwanese Exports," NBER Working Papers 2722, National Bureau of Economic Research, Inc.
- John Norsworthy & Show-Ling Jang, 1993. "Cost Function Estimation of Quality Change in Semiconductors," NBER Chapters, in: Price Measurements and Their Uses, pages 125-156 National Bureau of Economic Research, Inc.
- Curzi, Daniele & Olper, Alessandro, 2012. "Export behavior of Italian food firms: Does product quality matter?," Food Policy, Elsevier, Elsevier, vol. 37(5), pages 493-503.
- Fleming, Euan M. & Fleming, Pauline, 2007. "Evidence on trends in the single factoral terms of trade in African agricultural commodity production," 81st Annual Conference, April 2-4, 2007, Reading University, Agricultural Economics Society 7980, Agricultural Economics Society.
- Fleming, Euan M., 2007. "Use of the single factoral terms of trade to analyse agricultural production," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 51(2), June.
- Joshua Aizenman, 2010. "Comment on "Exporting Deflation? Chinese Exports and Japanese Prices"," NBER Chapters, in: China's Growing Role in World Trade, pages 227-230 National Bureau of Economic Research, Inc.
- Konstantin M. Wacker, 2011. "Do multinationals beat down developing countries' export prices? The impact of FDI on net barter terms of trade," Ibero America Institute for Econ. Research (IAI) Discussion Papers 211, Ibero-America Institute for Economic Research.
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.