Aggregating trade data into wider categories of goods… A)Contributes to make the IIT index lower B)Contributes to make the IIT index higher C)It has no impact on the IIT index

Aggregating trade data into wider categories of goods…

A)Contributes to make the IIT index lower

B)Contributes to make the IIT index higher

C)It has no impact on the IIT index

 

 

Answer:

Aggregating trade data into wider categories of goods contributes to make the IIT index higher. The more categories of goods grouped under an “industry”, leads to overlap between exports and imports of that industry and contributes to higer IIT index.

Asked on February 15, 2018 in economics.
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