Export and import price indices are essential for assessing the impact of international trade on the domestic economy. Among their most important uses are analyzing developments in the trade balance, measuring foreign prices' contribution to domestic inflation, and deflating nominal values of exports and imports for estimating the volume of gross domestic product. This paper discusses the main uses of trade indices and the data sources used to compile them. It also presents various approaches used to compile foreign trade price indices, addresses various problems encountered in developing these indices, and provides some recommendations on how to address them.po, / po, a#39; X = exports at current prices M = imports at current prices P0J= a price index based on some selected numeraire (32) is similar to (3 1 ), but defined in terms of the difference between exports and imports rather than their ratio.
|Title||:||Compiling and Using Export and Import Price Indices|
|Author||:||Jemma Dridi, Kimberly D. Zieschang|
|Publisher||:||International Monetary Fund - 2002-12-01|