European Parliament Library

Measuring Competitiveness :, Trade in Goods or Tasks?, Tamim Bayoumi, Mika Saito, Jarkko Turunen

With global supply chains, any value added or production task can be traded as part of goods. This means that competitiveness can be measured either in terms of “tasks” (Bems and Johnson, 2012), or goods, but with goods prices reflecting the cost of tasks embedded in those goods. We show that when measuring competitiveness in goods, the formula used in computing the real effective exchange rates at the IMF (Bayoumi, Lee, and Jayanthi, 2005) needs to be expressed in terms of the price of value added and needs an additional term, which captures a gain or loss in competitiveness of goods due to outsourcing
Table Of Contents
Cover; Abstract; Contents; I. Introduction; II. Model; III. Empirical Applications; A. Alternative REER Indices; B. Standard REER versus REER in Tasks; FIGURES; 1. Standard REER versus REER in Tasks; 2. Differences in Value-Added versus Gross Trade Weights; C. REER in Goods versus REER in Tasks; 3. REER in Goods versus REER in Tasks; 4. Change in REER: Tasks versus Goods, Adjusted; TABLES; 1: Dynamic Panel Data Analysis; IV. Concluding Remarks; REFERENCES; References
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (23 p.)
Specific Material Designation
Form Of Item

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