Armington Elasticities in Intermediate Inputs Trade: A Problem in Using Multilateral Trade Data

Mika Saito

No 2004/022, IMF Working Papers from International Monetary Fund

Abstract: This paper finds that the estimates of Armington elasticities (the elasticity of substitution between groups of products identified by country of origin) obtained from multilateral trade data can differ from those obtained from bilateral trade data. In particular, the former tends to be higher than the latter when trade consists largely of intermediate inputs. Given that the variety of intermediate inputs traded across borders is increasing rapidly, and that the effect of this increase is not adequately captured in multilateral trade data, the evidence shows that the use of multilateral trade data to estimate Armington elasticities needs caution.

Keywords: WP; industry; goods industry; The Armington Model; Intermediate Inputs Trade; Panel Data; trade data; industry Data; food products industry; industry-specific volume; equipment industry; inputs industry; gross output; Manufacturing; Agricultural commodities; Multilateral trade; Plurilateral trade; Imports; Global (search for similar items in EconPapers)
Pages: 39
Date: 2004-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (80)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=17094 (application/pdf)

Related works:
Journal Article: Armington elasticities in intermediate inputs trade: a problem in using multilateral trade data (2004)
Journal Article: Armington elasticities in intermediate inputs trade: a problem in using multilateral trade data (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2004/022

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().