These data include c.i.f.-f.o.b. differentials from 1978 forward and import duties
from 1989 forward. Penn World Table data … equation (1), where M denotes
imports, YM denotes importer income, YX denotes exporter income, and YW denotes world
-10-
10 … that country’s share of
world output (YX/YW), and this relationship also applies to goods produced at home. Consumer …