Principles of International Economics
Prof. Dr. Hans H. Bass, Bremen University of Applied Sciences, International Degree Programme in Economics
Summer Term 2010
Principles of International Economics
Topic 2: International Trade – Basic Facts
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1. International Trade in Commodities2. International Trade in Services
AgendaInternational Economics
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Merchandise Trade 1970-2008
International Trade
0
100
200
300
400
500
1970 1975 1980 1985 1990 1995 2000 2005
Exports of agricultural products Exports of fuels and mining products Exports of manufactures
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growth rate merchandise trade > growth rate world production(annual average percentage change)
.
CharacteristicsInternational Economics
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Source: WTO, ITS 2009
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different periods, but always: growth rate merchandise trade > growth rate GDP
different spatial growth patterns: “Triade”, EA-NICs, RoW
CharacteristicsInternational trade in commodities
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UN Comtradehttp://comtrade.un.org/db/dqQuickQuery.aspx
Data sourcesInternational trade in commodities
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CAGR (t0, t1) = ((Yt0/Yt1) (1/(t1-t0)) – 1)*100, where t0 indicates the starting period, and t1 indicates the end period, while Y indicates the Variable
CAGRInternational trade in commodities
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1. International Trade in Commodities2. International Trade in Services
AgendaInternational Economics
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TrendsInternational trade in services
0
100
200
300
400
500
600
700
1980 1983 1986 1989 1992 1995 1998 2001 2004
Dienstleistungen IDX Agrarprodukte IDX
Brennstoffe/Bergbau IDX Fertigwaren IDX
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0
10
20
30
40
50
60
70
80
90
100
1800 1850 1900 1950 2000
Bes
chäf
tigte
nant
eil i
n %
Background: Fourastié Hypothesis
International trade in services
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higher income elasticity of demand for personal services vis-à-vis commodities
technical changes in business-related products: “compacks”
Reasons for an increase in trade in services
International trade in services