Price and quantity indicators of Latin American and Caribbean Trade

Abstract

This document serves as a discussion of the methodology of the Inter-American Bank Integration and Trade Sector (INT) Export and Import External Trade Indices in the context of the greater theoretical and Latin American context. Part One of this document serves as a theoretical review on the best practices and characteristics of the indices. Part Two follows with examples from Latin America on methodologies from national institutes, highlighting Argentina, Colombia and Uruguay. A table in this section also offers a snapshot of the range of years and frequency of the national indices available in the region. Part Three delves into the methodology of the indicators that INT created in 2014 for all Latin American countries with publically available data, explaining not only the data collection and formulas used, but also the method of data correction. Last, the document presents a comparison between INT and other existing indices, highlighting the benefits and drawbacks of the indicators and their products. The analysis concludes that INT indices are comparable to both CEPAL and national methodologies, but have the advantage of being based completely on national data, and as a result fully reflect the prices received and paid for by all national economies.