Measuring Competitiveness; Trade in Goods or Tasks?
With global supply chains, any value added or production task can be traded as part of goods. This means that competitiveness can be measured either in terms of “tasks” (Bems and Johnson, 2012), or goods, but with goods prices reflecting the cost of tasks embedded in those goods. We show that when measuring competitiveness in goods, the formula used in computing the real effective exchange rates at the IMF (Bayoumi, Lee, and Jayanthi, 2005) needs to be expressed in terms of the price of value added and needs an additional term, which captures a gain or loss in competitiveness of goods due to outsourcing.
|Date of creation:||08 May 2013|
|Date of revision:|
|Contact details of provider:|| Postal: International Monetary Fund, Washington, DC USA|
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
|Order Information:||Web: http://www.imf.org/external/pubs/pubs/ord_info.htm|
References listed on IDEAS
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.:
- Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010.
"Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains,"
NBER Working Papers
16426, National Bureau of Economic Research, Inc.
- Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2011. "Give Credit where Credit is Due: Tracing Value Added in Global Production Chains," Working Papers 312011, Hong Kong Institute for Monetary Research.
- Mika Saito, 2004.
"Armington elasticities in intermediate inputs trade: a problem in using multilateral trade data,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 37(4), pages 1097-1117, November.
- Mika Saito, 2004. "Armington Elasticities in Intermediate Inputs Trade; A Problem in Using Multilateral Trade Data," IMF Working Papers 04/22, International Monetary Fund.
- Thorbecke, Willem, 2011. "Investigating the effect of exchange rate changes on china's processed exports," Journal of the Japanese and International Economies, Elsevier, vol. 25(2), pages 33-46, June.
When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:13/100. 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)
If references are entirely missing, you can add them using this form.