Hostname: page-component-78c5997874-xbtfd Total loading time: 0 Render date: 2024-11-05T10:25:01.324Z Has data issue: false hasContentIssue false

Some Empirical Evidence on the Behaviour of Export and Domestic Prices in Belgian Manufacturing Industry

Published online by Cambridge University Press:  17 August 2016

D.J. Frantzen*
Affiliation:
Free University of Brussels (VUB) and Darwin College, Cambridge.
Get access

Extract

A widespread view expressed in the theoretical macroeconomic literature concerned with price formation in open economies is that, in the absence of impediments to trade and insulating exchange rate movements, the prices of their internationally tradable goods are, by and large, determined at the level of competitive international markets. The most common justification is that the goods concerned are produced by a large number of firms from different countries, and that competitive commodity arbitrage tends to integrate the respective markets by eliminating all price divergences (in common currency). If so, the industries of the individual small economy can be conceived as competitive foreign price takers, implying both the dominance of foreign price influences over domestic costs,and a high degree of price flexibility with respect to short-term fluctuations in (international) demand.

Type
Research Article
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 1985 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

BIBLIOGRAPHY

Banque Nationale de Belgique, Bulletin de la Banque Nationale, various issues.Google Scholar
Barten, A.P. and Carrin, G. (1976), «Unemployment, Inflation and Price Expectations with Empirical Results for Belgium», European Economic Review, 7, 209219.Google Scholar
Barten, A.T., Carrin, G. and d’Alcantara, G. (1976), «Comet. A Medium-Term Macroeconomic Model for the EEC», European Economic Review, 7, 63115.Google Scholar
Beach, C. and MacKinnon, J.G. (1978), «A Maximum Likelihood Procedure for Regression with Autocorrelated Errors», Econometrica, 46, 5158.Google Scholar
Buijink, W. and Vandoorne, M. (1980), «Een sectoriële Analyse van het relatief belang van vraag- en kostenfactoren voor het prijsverloop in de Belgische Nijverheid (1972-1977)», Working Paper 80/107, CIM project.Google Scholar
Calmfors, L. and Herin, J. (1979), «Domestic and Foreign Price Influences: a Disaggregated Study of Sweden», in Lindbeck, A. , ed., Inflation and Employment in Open Economies, North Holland, Amsterdan.Google Scholar
Carlson, J.A. (1973), «The Production Lag», American Economic Review, 63, 7386.Google Scholar
Coutts, K.J., Godley, W.A.H. and Nordhaus, W.D. (1978), Industrial Pricing in the United Kingdom, Cambridge University Press, Cambridge.Google Scholar
Dreze, J.H. (1979), «Demand Estimation, Risk-Aversion and Sticky Prices», Economic Letters, 4, 16.Google Scholar
Fédération de l'industrie des Fabrications Métalliques, Recueil Statistique, various issues.Google Scholar
Ghikour-Mpia-Mwel, P. (1969), Les performances du modèle trimestriel des prix, des salaires et de l'emploi «EOLE», élaboré par Glesjer, Cahiers Economiques de Bruxelles, n° 44, pp. 549582.Google Scholar
Ghymers, C., Houard, J. and Prades, F.G. (1977a), «Evolution de la compétitivité sectorielle des principales économies industrielles selon l’indicateur synthétique de l’IRES 1963-1976», Bulletin de l’IRES, n° 3940.Google Scholar
Ghymers, C., Houard, J. and Prades, F.G. (1977b), «La position compétitive de l’économie belge sur le marché international», Bulletin de l’IRES, n° 43.Google Scholar
Glejser, H. (1967), «Un modèle trimestriel partiel des prix, des salaires et de l’emploi en Belgique», Cahiers Economiques de Bruxelles, n° 35, 299320.Google Scholar
Godley, W.A.H. and Nordhaus, W.D. (1972), «Pricing in the Trade Cycle», Economic Journal, 82, 853882.Google Scholar
Huveneers, C. (1981), «Price Formation and the Scope for Oligopolistic Conduct in a Small Open Economy», Recherches Economiques de Louvain, 47, 209242.Google Scholar
Institut National de Statistique, Etudes Statistiques, various issues.Google Scholar
Institut National de Statistique, Bulletin Statistique, various issues.Google Scholar
Institut National de Statistique, Statistiques Industrielles, various issues.Google Scholar
Institut National de Statistique, Statistiques Sociales, various issues.Google Scholar
Institut National de Statistique, Bulletin Mensuel du Commerce Extérieur de l’UEBL, various issues.Google Scholar
Neild, R.R. (1963), Pricing and Employment in the Trade Cycle, NIESR Occasional Paper 21, Cambridge University Press, Cambridge.Google Scholar
Prades, F.G. (1975), «Un Indicateur Synthétique de Compétitivité Internationale, Bulletin de l’IRES, n° 29.Google Scholar
Scherer, F.M. (1972), Industrial Pricing, Rand Mc Nally, Chicago.Google Scholar
Sylos-Labini, P. (1979), «Prices and Income Distribution in Manufacturing Industry», Journal of Post Keneysian Economics, 2, 325.Google Scholar
Van Poeck, A. and Pauwels, H. (1980), «Prijsvorming en competitiviteits-analyse: een voorstudie voor de Belgische metaalverwerkende nijverheid», Discussion Paper 80/103, St Ignatius University, Antwerp.Google Scholar
Winters, L.A. (1981), An Econometric Model of the Export Sector, Cambridge University Press, Cambridge.Google Scholar