Real GDP, real domestic income, and terms-of-trade changes

Kohli, Ulrich

doi:10.1016/j.jinteco.2003.07.002

Cited by 152 publications

(139 citation statements)

References 9 publications

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“…If real tariff revenues increase enough to offset the decline in real GDP at factor prices, real GDP increases; if the change in tariff revenues is small, real GDP decreases. The effect of the terms of trade on real GDP in a country without tariffs is addressed in Ulrich Kohli (2004), and in models with tariffs, in Kehoe and Ruhl (2008) It is worth noting that this comparison assumes, for the moment, that China's higher GDP growth was not itself a gain from trade. We could restate our comparison as saying the gains from trade identified by standard models have been higher in Mexico than in China.…”

Section: Gains From Trade and Real Gdpmentioning

confidence: 99%

“…Changes in the terms of trade impact welfare in the country but will generally not translate into changes in real GDP, as discussed above. Kohli (2004) argues that the invariance of real GDP to changes in the terms of trade makes real GDP a poor measure of country progress; Kehoe and Ruhl (2008) and Feenstra et al (2009) study the impact (or lack thereof) of the terms of trade on measures of productivity. These authors suggest several alternatives to real GDP;…”

Section: Gains From the Terms Of Tradementioning

confidence: 99%

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Why Have Economic Reforms in Mexico Not Generated Growth?

Kehoe

Ruhl²

2010

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Following its opening to trade and foreign investment in the mid-1980s, Mexico's economic growth has been modest at best, particularly in comparison with that of China. Comparing these countries and reviewing the literature, we conclude that the relation between openness and growth is not a simple one. Using standard trade theory, we find that Mexico has gained from trade, and by some measures, more so than China. We sketch out a theory in which developing countries can grow faster than the United States by reforming. As a country becomes richer, this sort of catch-up becomes more difficult. Absent continuing reforms, Chinese growth is likely to slow down sharply, perhaps leaving China at a level less than Mexico's real GDP per working-age person.

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Section: Gains From Trade and Real Gdpmentioning

confidence: 99%

Section: Gains From the Terms Of Tradementioning

confidence: 99%

Why Have Economic Reforms in Mexico Not Generated Growth?

Kehoe

Ruhl²

2010

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“…An improvement in the terms of trade would cause real GDI to grow faster than real GDP. Kohli (2004Kohli ( , 2006 has shown that this pattern holds for Switzerland and Canada, for example, due to their terms of trade improvements. Kehoe and Ruhl (2006) also show how the terms of trade affect real income, but should not have a first-order effect on real GDP.…”

Section: Concepts Of Real Gdpmentioning

confidence: 99%

“…A final possible application of real GDP data is to the time-series measurement of living standards in countries. This is the topic that Kohli (2004Kohli ( , 2006 has studied for Switzerland and Canada, for example. He argues that even though the growth of real GDP from the output side has been poor, the terms of trade have improved for these countries, so that living standards are rising.…”

mentioning

confidence: 99%

Estimating Real Production And Expenditures Across Nations : A Proposal For Improving The Penn World Tables

Feenstra¹,

Heston²,

Timmer³

et al. 2007

Policy Research Working Papers

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In this paper we propose a new approach to the international comparison of real GDP, as measured from the output-side. The traditional Gary-Khamis system, which measures real GDP from the expenditure-side, is modified to include differences in the terms of trade between countries. It is shown that this system has a strictly positive solution under mild assumptions. On the basis of a set of domestic final output, import and export prices and values for 151 countries in 1996, it is shown that differences between real GDP measured from the expenditure-side and output-side can be substantial, especially for small open economies. We also obtain cross-country measures of "real openness" and the terms of trade.

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“…Dies gilt erst recht, wenn wir das zusätzliche Kaufkraftpotenzial adäquat erfassen, von dem die Schweiz aufgrund der Verbesserung ihrer Terms of trade profitiert hat. Hierfür bietet sich das "Command Base GDP" an, das im Gegensatz zur üblichen Art der Messung die Leistungsbilanzüberschüsse mit Importpreisen deflationiert (Kohli 2004). Von 1980 bis 2010 ist das Realeinkommen nach diesem Maß gegenüber dem normal definierten Bruttoinlandsprodukt um zusätzliche 13 Prozent gewachsen.…”

Section: Entstehung Des Schweizer Frankensunclassified

Geldpolitik in großen und kleinen Währungsräumen – Was lehrt uns das Beispiel des Schweizer Frankens?

Baltensperger

2016

Perspektiven Der Wirtschaftspolitik

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Erstens, weil die Geldpolitik der Schweiz gut als Beispiel taugt, wenn man über eine Frage von allgemeiner Bedeutung diskutieren will. Ist die optimale Geldpolitik kleiner Länder -und davon gibt es ja eine ganze Mengenatürlicherweise eine andere als jene großer Länder? Die Vorstellung ist relativ weit verbreitet, dass kleine Länder ihre Währung am besten an jene eines großen Nachbarn binden sollten, große Länder hingegen "autonome" Wäh-rungen führen könnten, die miteinander durch flexible Wechselkurse verbunden sind. Milton Friedman wird häu-fig in diesem Sinn zitiert. Die Idee, dass große Währungs-räume besser als kleine Länder dafür geeignet sind, eine selbständige, "autonome" Geldpolitik zu betreiben, hat zweifellos einen wahren Kern. Die Währungsgeschichte der Schweiz war, wie ich zeigen werde, lange von dieser Idee geprägt. Dem steht allerdings ein anderer Gedanke gegenüber, der ebenso einleuchtend und verbreitet ist, der aber leicht einen Widerspruch zum ersten schaffen kannwir verbinden ihn in der Regel mit dem Namen von Robert Mundell. Festkurssysteme, oder gar Währungsunionen, setzen eine gewisse Homogenität ihres Teilnehmerkreises voraus, wenn sie erfolgreich und dauerhaft sein sollen.

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Real GDP, real domestic income, and terms-of-trade changes

Cited by 152 publications

References 9 publications

Why Have Economic Reforms in Mexico Not Generated Growth?

Why Have Economic Reforms in Mexico Not Generated Growth?

Estimating Real Production And Expenditures Across Nations : A Proposal For Improving The Penn World Tables

Geldpolitik in großen und kleinen Währungsräumen – Was lehrt uns das Beispiel des Schweizer Frankens?

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