Measuring Price Competitiveness for Industrial Country Trade in Manufactures

This paper describes the methods used by the Research Department to construct the indicators of price competitiveness, or real effective exchange rates, published for 17 industrial countries in International Financial Statistics. The weighting scheme used to construct these indicators is derived fro...

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Bibliographic Details
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1987
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Measuring Price Competitiveness for Industrial Country Trade in Manufactures 
260 |a Washington, D.C.  |b International Monetary Fund  |c 1987 
300 |a 94 pages 
651 4 |a United States 
653 |a Balance of trade 
653 |a Trade balance 
653 |a Exports and Imports 
653 |a Empirical Studies of Trade 
653 |a Trade: General 
653 |a Finance 
653 |a Financial markets 
653 |a Competition 
653 |a International trade 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Finance: General 
653 |a Exports 
653 |a Imports 
653 |a International economics 
653 |a Export competitiveness 
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520 |a This paper describes the methods used by the Research Department to construct the indicators of price competitiveness, or real effective exchange rates, published for 17 industrial countries in International Financial Statistics. The weighting scheme used to construct these indicators is derived from a disaggregated system of demand equations encompassing trade relations in bilateral and third-country markets. Other commonly used trade-weighting schemes are shown to be special cases of the more general and less restrictive competitiveness weights. Differences in the measurement of relative price changes using indices based on other weights are explained by the greater informational content of the competitiveness weights