Prices in the czech foreign trade

Abstract

The paper examines the Czech export and import prices (unit values, kilogram prices) in the year 2000 on the basis of detailed (product) level. The present export/import price relations in the two-way-trade are not favourable. The findings suggest a residual specialization of the Czech exports on down market products. But terms of trade development observed over the recent period (1994 - 2000) is positive: Whereas average export prices have risen rapidly, the increase of import prices has been much lower. The best results have been achieved in trade with products of motor car industry, mechanical engineering, electrical machinery, office machinery and computers. On the other side of the scale are products of metalurgy and chemical industry. High correlation has been found between foreign capital engagement and sectoral export/import prices performance.terms of trade, prices in international trade, unit values