Commodity Terms of Trade: A New Database

39 Pages Posted: 13 Feb 2019

See all articles by Bertrand Gruss

Bertrand Gruss

International Monetary Fund (IMF)

Suhaib Kebhaj

International Monetary Fund (IMF)

Date Written: January 2019

Abstract

This paper presents a comprehensive database of country-specific commodity price indices for 182 economies covering the period 1962-2018. For each country, the change in the international price of up to 45 individual commodities is weighted using commodity-level trade data. The database includes a commodity terms-of-trade index-which proxies the windfall gains and losses of income associated with changes in world prices-as well as additional country-specific series, including commodity export and import price indices. We provide indices that are constructed using, alternatively, fixed weights (based on average trade flows over several decades) and time-varying weights (which can account for time variation in the mix of commodities traded and the overall importance of commodities in economic activity). The paper also discusses the dynamics of commodity terms of trade across country groups and their influence on key macroeconomic aggregates.

Keywords: Commodity terms of trade; terms of trade; commodity prices, Commodity terms of trade, terms of trade, commodity prices, General

JEL Classification: E30, F10, F40, F4

Suggested Citation

Gruss, Bertrand and Kebhaj, Suhaib, Commodity Terms of Trade: A New Database (January 2019). IMF Working Paper No. 19/21. Available at SSRN: https://ssrn.com/abstract=3333745

Bertrand Gruss (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Suhaib Kebhaj

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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