ABSTRACT

The number of distinct traded commodities is so great that it is impossible to discuss the determinants of trade coherently without some system of aggregation. Aggregation results of Fisher (1969) and Chipman (1976) are adapted here to aggregate a system of trade equations that explain the level of net exports of a set of fifty-six commodity groups. These commodity groups are combined if their net exports are similarly affected by measured factor supplies including land, labour and capital.