Premium
Terms of Trade Indices in the Presence of Re‐Export Trade *
Author(s) -
LLOYD P. J.,
SANDILANDS R. J.
Publication year - 1985
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1985.tb02021.x
Subject(s) - economics , index (typography) , commodity , neglect , international economics , international trade , psychology , market economy , computer science , psychiatry , world wide web
This paper shows how the index of the commodity terms of trade as ordinarily constructed should be adjusted to take account of re‐exports in the broad sense of the use of intermediate inputs in export activities which had been imported. The neglect of this adjustment produces indices which generally overstate the movement of the terms of trade. An empirical study of Singapore suggests that the bias may be substantial.