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Harmonizing the Harmonized System

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  • Lukaszuk, Piotr
  • Torun, David

Abstract

International trade research relies heavily on data reported at the product level. Regular classification updates of the “Harmonized System” lead to intertemporal inconsistencies affecting up to 44% of world goods trade. Existing methods to standardize product vintages either drop numerous products over time or bulk updated codes into large synthetic categories. We largely overcome these issues by developing an algorithm that exploits the persistence of trade data to convert trade flows between vintages. Our conversion estimates are robust to year and sample choices. Provided a clear correspondence and persistent data, the algorithm can be applied to other classifications.

Suggested Citation

  • Lukaszuk, Piotr & Torun, David, 2022. "Harmonizing the Harmonized System," Economics Working Paper Series 2212, University of St. Gallen, School of Economics and Political Science.
    • Handle: RePEc:usg:econwp:2022:12
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    File URL: http://ux-tauri.unisg.ch/RePEc/usg/econwp/EWP-2212.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    international trade data; product classification; classification updates; Harmonized System (HS); concordance;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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