Global production sharing and the measurement of price elasticity in international trade

Prema chandra Athukorala; Fahad Khan

doi:10.1016/j.econlet.2015.09.038

Global production sharing and the measurement of price elasticity in international trade

Prema chandra Athukorala^*, Fahad Khan

^*Corresponding author for this work

Indonesia Project

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

The implications of global production sharing for the measurement of price elasticity in international trade is examined using a unique dataset relating to manufacturing imports of the USA. There is strong evidence that parts and components, which account for a growing share of manufacturing trade, are remarkably less sensitive to changes in relative prices compared to final goods. This finding casts doubt on the conventional approach to trade flow modelling that treats parts and components and finals goods as a unified product.

Original language	English
Pages (from-to)	27-30
Number of pages	4
Journal	Economics Letters
Volume	139
DOIs	https://doi.org/10.1016/j.econlet.2015.09.038
Publication status	Published - 1 Feb 2016

Access to Document

10.1016/j.econlet.2015.09.038

Cite this

@article{e329de2c536b408184f0e294e1a41bdc,

title = "Global production sharing and the measurement of price elasticity in international trade",

abstract = "The implications of global production sharing for the measurement of price elasticity in international trade is examined using a unique dataset relating to manufacturing imports of the USA. There is strong evidence that parts and components, which account for a growing share of manufacturing trade, are remarkably less sensitive to changes in relative prices compared to final goods. This finding casts doubt on the conventional approach to trade flow modelling that treats parts and components and finals goods as a unified product.",

keywords = "Dynamic fixed effects estimator, Global production sharing, Trade elasticity",

author = "Athukorala, {Prema chandra} and Fahad Khan",

note = "Publisher Copyright: {\textcopyright} 2015 Elsevier B.V.",

year = "2016",

month = feb,

day = "1",

doi = "10.1016/j.econlet.2015.09.038",

language = "English",

volume = "139",

pages = "27--30",

journal = "Economics Letters",

issn = "0165-1765",

publisher = "Elsevier B.V.",

}

TY - JOUR

T1 - Global production sharing and the measurement of price elasticity in international trade

AU - Athukorala, Prema chandra

AU - Khan, Fahad

PY - 2016/2/1

Y1 - 2016/2/1

N2 - The implications of global production sharing for the measurement of price elasticity in international trade is examined using a unique dataset relating to manufacturing imports of the USA. There is strong evidence that parts and components, which account for a growing share of manufacturing trade, are remarkably less sensitive to changes in relative prices compared to final goods. This finding casts doubt on the conventional approach to trade flow modelling that treats parts and components and finals goods as a unified product.

AB - The implications of global production sharing for the measurement of price elasticity in international trade is examined using a unique dataset relating to manufacturing imports of the USA. There is strong evidence that parts and components, which account for a growing share of manufacturing trade, are remarkably less sensitive to changes in relative prices compared to final goods. This finding casts doubt on the conventional approach to trade flow modelling that treats parts and components and finals goods as a unified product.

KW - Dynamic fixed effects estimator

KW - Global production sharing

KW - Trade elasticity

UR - http://www.scopus.com/inward/record.url?scp=84952891335&partnerID=8YFLogxK

U2 - 10.1016/j.econlet.2015.09.038

DO - 10.1016/j.econlet.2015.09.038

M3 - Article

SN - 0165-1765

VL - 139

SP - 27

EP - 30

JO - Economics Letters

JF - Economics Letters

ER -

Global production sharing and the measurement of price elasticity in international trade

Abstract

Access to Document

Other files and links

Fingerprint

Cite this