relatively large domestic value-added share in its exports and its relatively small
value-added share in competing exporters like Mexico. These factors also imply that
there is a small — in fact negligible — price index effect for the imports of electrical
and optical equipment from Brazil. The third column reports estimates for Hungary; a
large difference in the two trade elasticities reflects the country’s unusually low valueadded
share in its exports of electrical and optical equipment to the United States.
Like Brazil, the price index effect is negligible and the trade elasticity is determined
almost entirely by the own price effect.