Are Partner-Country Statistics Useful for Estimating Missing Trade Data?

Aside from product composition, tests show that partner-country data are equally inaccurate for estimating the direction of trade. Why are partner-country data so unreliable for approximating missing data? Evidence shows: 1) problems in reporting or processing COMTRADE data; 2) valuation differences...

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Bibliographic Details
Main Author: Yeats, J. Alexander
Format: eBook
Language:English
Published: Washington, D.C The World Bank 1999
Subjects:
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
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260 |a Washington, D.C  |b The World Bank  |c 1999 
300 |a 44 p. 
653 |a Macroeconomics and Economic Growth 
653 |a International Trade Statistics 
653 |a Country Strategy and Performance 
653 |a Bilateral Trade 
653 |a International Economics & Trade 
653 |a Trade Data 
653 |a Transport Economics, Policy and Planning 
653 |a Science and Technology Development 
653 |a Export Processing Zones 
653 |a Trade Policy 
653 |a Customs Union 
653 |a Import Statistics 
653 |a Export Value 
653 |a Common Carriers Industry 
653 |a Customs 
653 |a Private Sector Development 
653 |a Statistical and Mathematical Sciences 
653 |a International Economics 
653 |a Development Economics and Aid Effectiveness 
653 |a Trade 
653 |a Trade Law 
653 |a Import Data 
653 |a Imports 
653 |a Free Trade Agreement 
653 |a Import Value 
653 |a Tariffs 
653 |a Export Processing 
653 |a Free Trade 
653 |a International Trade 
653 |a Emerging Markets 
653 |a Public Sector Development 
653 |a Industry 
653 |a Law and Development 
653 |a Exports 
653 |a Economic Theory and Research 
653 |a Transport 
653 |a Developing Countries 
700 1 |a Yeats, J. Alexander 
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520 |a Aside from product composition, tests show that partner-country data are equally inaccurate for estimating the direction of trade. Why are partner-country data so unreliable for approximating missing data? Evidence shows: 1) problems in reporting or processing COMTRADE data; 2) valuation differences (f.o.b. versus c.i.f.) for imports and exports; 3) problems relating to entrepot trade, or exports originating in export processing zones; 4) problems associated with exchange-rate changes; 5) intentional or unintentional misclassification of products; 6) efforts to conceal trade data for proprietary reasons; and 7) financial incentives to purposely falsify trade data. The author concludes that efforts to improve the general quality, or availability, of trade statistics using partner-country data holds little or no promise, although this information may be useful in specific cases where the trade statistics of a certain country are known to incorporate major errors.  
520 |a Significant progress in ugrading the accuracy, and coverage, of trade statistics can be achieved only by improving each country's procedures for data collection 
520 |a Because many developing countries fail to report trade statistics to the United Nations, there has been an interest in using partner-country data to fill these information gaps. The author used partner-country statistics for 30 developing countries to estimate actual (concealed) trade data and analyzed the magnitude of the resulting errors. The results indicate that partner-country data are unreliable even for estimating trade in broad aggregate product groups such as foodstuffs, fuels, or manufactures. Moreover, tests show that the reliability of partner-country statistics degenerates sharply as one moves to more finely distinguished trade categories (lower-level SITCs). Equally disturbing, about one-quarter of the partner-country comparisons take the wrong sign. That is, one country's reported free-on-board (f.o.b.) exports exceed the reported cost-insurance-freight (c.i.f.) value of partners' imports.