The trade elasticity consists of two parts: an own-price effect and a price-index effect.
For country i, the own-price effect is determined by the share of i ’s value-added in its
own exports, while the price-index effect depends on the share of i ’s value-added used
by all competing exporters. Appendix A gives the expression for the trade elasticity
based on value-added shares, export shares and the pass-through and elasticity of
substitution values given in Table 4.2.