The organic chemicals industry of the USSR: a case-study in the measurement of comparative technological sophistication by means of kilogram-prices |
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| Authors: | Ronald Amann Jiri Slama |
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| Institution: | Faculty of Commerce and Social Science, The University of Birmingham, Birmingham, UK;Osteuropa-Institut, Munich, F.R.G. |
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| Abstract: | The comparative kilogram-price of an equivalent product group in international trade is a rough indication of underlying technological capability. Although there are many theoretical and practical difficulties involved in applying this approach to East-West trade, these difficulties can be minimised by a careful selection of product groups. In this connection, advanced chemical products are particularly suitable because the chemical industry is one in which both kilogram-prices and technological sophistication tend to increase hand-in-hand at successive stages of manufacture. The results of this enquiry are quite striking. From the standpoint of bilateral trade, the kilogram-prices of Soviet and East European exports to the EEC countries are consistently lower than those of corresponding imports from the EEC. Throughout the period 1960–1972 these differentials appears to be closing either very slowly or not at all, while the Soviet and East European share of the EEC marked has remained more or less constant or has declined since the mid-1960's. From the alternative perspective of the “neutral” Yugoslavian market, the kilogram-prices of EEC exports are again consistently higher than those obtained by the Comecon coun tries. Moreover, there has been a considerable eroson in the market share of the Comecon countries since the mid-1960's. These general findings are broadly in line with other kinds of estimates and suggest that in these relatively advanced and dynamic sectors of industry, Soviet and East European technology is at present substantially inferior to that of the Common Market countries. |
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