Author: Ceglowski, Janet
Source: REVIEW OF INTERNATIONAL ECONOMICS, 27 (1):184-200; 10.1111/roie.12371 FEB 2019
Publication Type: Article
Abstract: This study uses bilateral U.S. export data from the OECD's Trade in Value-Added database to estimate and compare elasticities for three distinct export measures: conventional measures of gross exports, domestic value added in gross exports, and value-added exports. It finds little evidence of significant differences in the income elasticities across the three export measures or in the price elasticities of gross exports and domestic value added in gross exports. However it finds a significantly higher price elasticity for value-added exports, suggesting that conventional price elasticity estimates may underestimate the impact of a real dollar depreciation on U.S. exports of value added.