Unit-value ratio (also used in German; more rarely value-added ratio)
Ratio formed from the export value of goods (in GE) divided by the export quantity (in kg). It expresses the value added (net value added) of the exporting industries. – It is an important indicator for the exchange rate of a currency and the terms of trade. This is because the higher the quality of a product, the higher the value-to-weight ratio and thus CETERIS PARIBUS the pricing power on the markets. – The unit values of individual sectors of the economy differ greatly in their level. The lowest rank is occupied by the food and textile industries. The pharmaceutical industry and the manufacture of precision instruments, including watches, and electronics have the highest weight. – Companies with superior pricing power can generally expect lower interest rates for loans because they also represent a lower risk from the point of view of the bank as debtor. – See devaluation, fiscal, Balassa index, producer prices, industrial, EMU explosive, research ratio, trade balance, import content, crisis vulnerability, macro funds, degree of openness, structural change, terms of trade, growth contribution, competitive status, international, balance of payments. – Cf. Deutsche Bundesbank Monthly Report of May 2008, pp. 42 f. (correlation between price competitiveness and economic growth), ECB Monthly Report of December 2008, pp. 102 ff. (recalculation of indices for import prices and producer export prices in industry; overviews), ECB Annual Report 2008, pp. 93 ff. (differing competitiveness of individual EU member states; overviews), ECB Monthly Report of May 2010, pp. 85 f. (influence of changing export prices on the exchange rate; overview 1994 to 2010).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/