Working Paper: CEPR ID: DP9254
Authors: Ilke Van Beveren; Andrew B. Bernard; Hylke Vandenbussche
Abstract: This paper provides concordance procedures for product-level trade and production data in the EU and examines the implications of changing product classifications on measured product adding and dropping at Belgian firms. Using the algorithms developed by Pierce and Schott (2012a,b), the paper develops concordance procedures that allow researchers to trace changes in coding systems over time and to translate product-level production and trade data into a common classification that is consistent both within a single year and over time. Separate procedures are created for the eight-digit Combined Nomenclature system used to classify international trade activities at the product level within the European Union as well as for the eight-digit Prodcom categories used to classify products in European domestic production data. The paper further highlights important differences in coverage between the Prodcom and Combined Nomenclature classifications which need to be taken into account when generating combined domestic production and international trade data at the product level. The use of consistent product codes over time results in less product adding and dropping at continuing firms in the Belgian export and production data.
Keywords: combined nomenclature; concordance; exports; harmonized system; imports; prodcom
JEL Codes: C81; F1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| consistent product codes (L15) | reduction in product adding and dropping (L15) |
| changing classification systems (P50) | number of products added or dropped (C69) |
| consistent product codes for production (L15) | reduction in number of products added or dropped (L15) |
| consistent product codes for production (L15) | decrease in value of production associated with changes (E23) |
| years with major revisions to classification systems (C42) | large amounts of product addition and dropping (L23) |