IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/07-121.html
   My bibliography  Save this paper

Do Unit Value Export, Import, and Terms of Trade Indices Represent or Misrepresent Price Indices?

Author

Listed:
  • Mick Silver

Abstract

Unit value export and import indices compiled from returns to customs authorities are often used as surrogates for price indices in the measurement of inflation transmission, terms of trade (effects), and to deflate import and export value series to derive volume series. Their widespread use is mainly due to their relatively low cost compared with establishment price surveys. This paper provides evidence of substantial bias in their representation of such price changes. Their continued use would mislead economic analysis. The paper considers the efficacy of alternative strategies for their improvement, and argues for a move to establishment-based price surveys.

Suggested Citation

  • Mick Silver, 2007. "Do Unit Value Export, Import, and Terms of Trade Indices Represent or Misrepresent Price Indices?," IMF Working Papers 07/121, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:07/121
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=20943
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hoffmann, Johannes & Kurz-Kim, Jeong-Ryeol, 2006. "Consumer price adjustment under the microscope: Germany in a period of low inflation," Discussion Paper Series 1: Economic Studies 2006,16, Deutsche Bundesbank.
    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. Alberto Bagnai & Christian Alexander Mongeau Ospina, 2014. "The a/simmetrie annual macroeconometric model of the Italian economy: structure and properties," a/ Working Papers Series 1405, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    2. Charlier, Christophe & Guillou, Sarah, 2014. "Distortion effects of export quota policy: an analysis of the China-Raw Materials dispute," China Economic Review, Elsevier, vol. 31(C), pages 320-338.
    3. repec:ebl:ecbull:v:6:y:2008:i:5:p:1-15 is not listed on IDEAS
    4. Ceglowski, Janet, 2010. "Exchange rate pass-through to bilateral import prices," Journal of International Money and Finance, Elsevier, vol. 29(8), pages 1637-1651, December.
    5. repec:wfo:wstudy:60648 is not listed on IDEAS
    6. Lawrence L Schembri, 2010. "Discussion of Terms of Trade Shocks and Fiscal Cycles," RBA Annual Conference Volume,in: Renée Fry & Callum Jones & Christopher Kent (ed.), Inflation in an Era of Relative Price Shocks Reserve Bank of Australia.
    7. repec:spr:italej:v:4:y:2018:i:1:d:10.1007_s40797-018-0072-8 is not listed on IDEAS
    8. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2018. "Back on Track? A Macro–Micro Narrative of Italian Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 1-31, March.
    9. 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.
    10. Sarah Guillou & Michel Bernini & Flora Bellone, 2013. "Firms' leverage and export quality evidence from France," Sciences Po publications 2013-13, Sciences Po.
    11. Martin, Julien, 2012. "Markups, quality, and transport costs," European Economic Review, Elsevier, vol. 56(4), pages 777-791.
    12. Salido Marcos, Joaquín & Bellhouse, Tom, 2016. "Economic and Social Upgrading: Definitions, connections and exploring means of measurement," Sede Subregional de la CEPAL en México (Estudios e Investigaciones) 40096, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    13. Emine Boz & Gita Gopinath & Mikkel Plagborg-Møller, 2017. "Global Trade and the Dollar," NBER Working Papers 23988, National Bureau of Economic Research, Inc.
    14. Gabor Bekes & Balazs Murakozy & Zsuzsa Munkacsi & Gabor Oblath, 2013. "Unit Values, Unit Labor Costs and Trade Performance in Four Central European Countries," IEHAS Discussion Papers 1329, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    15. Roberto Álvarez; J. & Rodrigo Fuentes, 2009. "Entry into Export Markets and Product Quality Differences," Working Papers Central Bank of Chile 536, Central Bank of Chile.
    16. Dominique Peters, 2010. "Price Competitiveness in Central and Eastern Europe - a case study for transition economies," IMK Studies 01-2010, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    17. repec:wfo:wstudy:60838 is not listed on IDEAS
    18. Mick Silver, 2009. "An Index Number Formula Problem; The Aggregation of Broadly Comparable items," IMF Working Papers 09/19, International Monetary Fund.
    19. Konstantin M. Wacker, 2011. "The Impact of Foreign Direct Investment on Developing Countries’ Terms of Trade," WIDER Working Paper Series 006, World Institute for Development Economic Research (UNU-WIDER).
    20. Guillaume Gaulier & Julien Martin & Isabelle Méjean & Soledad Zignago, 2008. "International Trade Price Indices," Working Papers 2008-10, CEPII research center.
    21. Stefan Schiman & Andreas Reinstaller, 2015. "Analyse der Terms-of-Trade Österreichs," WIFO Studies, WIFO, number 60648, July.
    22. Jarkko Turunen & Richard T. Harmsen & Tamim Bayoumi, 2011. "Euro Area Export Performance and Competitiveness," IMF Working Papers 11/140, International Monetary Fund.
    23. repec:jns:jbstat:v:227:y:2007:i:3:p:295-329 is not listed on IDEAS

    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:imf:imfwpa:07/121. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi). General contact details of provider: http://edirc.repec.org/data/imfffus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.