Part2 Chapter 5:Compilation of Trade Indices Using UN Comtrade Data Based on SITC and HS

Since 2004, the Institute of Developing Economies (IDE) has formulated trade indices using SITC-based data drawn from UN Commodity Trade Statistics Database (Comtrade) for the previous four years.In 2005, the trade indices were formulated using Comtrade data based only on SITC Revision 1.In 2007, Comtrade data based on all of the SITC revisions (SITC Revisions 1 to 3; below, they will be abbreviated SITC-R1, SITC-R2 and SITC-R3) were used in the formulation of the indices.For the present indices, Comtrade data based on the Harmonized Commodity Description and Coding System (HS) were also employed, and the indices were formulated using data based on all SITC revisions and HS versions.This paper will first consider the significance of formulating trade indices using data based on HS, following which it will discuss the formulation of correspondence tables between HS and 20 industry classifications formulated by Kinoshita and Yamada in 1993 (termed "KY20" bellow) which this necessitated.To conclude, it will compare and consider the HS-based and the SITC-based indices.