--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-13/real-gdp-real-gdi-and-trading-gains-canada-1981-2005/" title: "Real GDP, Real GDI, and Trading Gains: Canada, 1981-2005" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T06:53:55+00:00" date_modified: "2026-07-20T20:34:31+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2006" ipm_keyword: - "Canada" - "commodity prices" - "income measurement" - "purchasing power parity" - "real GDI" - "real GDP" - "superlative index" - "terms of trade" - "trading gains" ipm_research_theme: - "Measurement and methodology" - "Trade" ipm_country_focus: - "Australia" - "Canada" - "International" - "Switzerland" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Real GDP, Real GDI, and Trading Gains: Canada, 1981-2005 Canonical URL: https://csls.ca/ipm-archive/ipm-issue-13/real-gdp-real-gdi-and-trading-gains-canada-1981-2005/ # Real GDP, Real GDI, and Trading Gains: Canada, 1981-2005 [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-13-4-Kohli.pdf) Cite this article × Cite this article as: Kohli, Ulrich. 2006. “Real GDP, Real GDI, and Trading Gains: Canada, 1981-2005.” International Productivity Monitor, No. 13 (Fall 2006): 46–56. https://www.csls.ca/ipm-archive/ipm-issue-13/real-gdp-real-gdi-and-trading-gains-canada-1981-2005/ ## Author: - Ulrich Kohli Swiss National Bank ## IPM Issue 13 Fall 2006 pp. 46–56 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Appendix: Variable Definitions and Country/Sector Coverage for Regulatory Reform Analysis Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 1–18](https://csls.ca/ipm-archive/ipm-issue-49/appendix-variable-definitions-and-country-sector-coverage-for-regulatory-reform-analysis/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [How Does Industrial Policy Impact Output, Hours and Productivity? The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Accounting for the Decline of Canada’s Real GDP Per Capita since Mid-2022 Philip Smith Spring 2024 | IPM Issue 46 | pp. 83–100](https://csls.ca/ipm-archive/ipm-issue-46/accounting-for-the-decline-of-canadas-real-gdp-per-capita-since-mid-2022/) [IPM Issue 47 Editors’ Overview Andrew Sharpe, Bart van Ark Fall 2024 | IPM Issue 47 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-47/) [IPM Issue 46 Editors’ Overview Andrew Sharpe, Bart van Ark Spring 2024 | IPM Issue 46 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-46/) [Capacity Utilization and Production Function Estimation: Implications for Productivity Analysis Jianmin Tang, Weimin Wang Fall 2023 | IPM Issue 45 | pp. 178–199](https://csls.ca/ipm-archive/ipm-issue-45/capacity-utilization-and-production-function-estimation-implications-for-productivity-analysis/) [Canada’s Patent Productivity Paradox: Recent Trends and Implications for Future Productivity Growth Iain Cockburn, Megan MacGarvie, John McKeon Fall 2023 | IPM Issue 45 | pp. 120–154](https://csls.ca/ipm-archive/ipm-issue-45/canadas-patent-productivity-paradox-recent-trends-and-implications-for-future-productivity-growth/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Real gross domestic product (GDP) fails to account for the trading gains and losses that result from changes in the terms of trade and in the real exchange rate (the price of tradables relative to the price of nontradables). Canada has enjoyed vast improvements in its terms of trade over recent years and there is a growing suspicion that real GDP has done an inadequate job at reflecting the resulting increases in real value added and real gross domestic income (GDI). Superlative measures of the terms of trade and real exchange rate effects confirm this view, with the trading gains adding up to 4.8 per cent of GDP between 2002 and 2005. C AN AD A HA S EXPE RI EN CE D S UBSTANTI AL Le produit intérieur brut (PIB) réel ne tient pas compte des gains et des pertes d’échange qui résultent des variations des termes de l’échange et du taux de change réel (le prix des biens échangeables par rapport au prix des biens non échangeables). Le Canada a bénéficié de considérables améliorations de ses termes de l’échange ces dernières années, et il existe un soupçon croissant que le PIB réel n’a pas reflété adéquatement les augmentations qui en ont résulté en matière de valeur ajoutée réelle et de revenu intérieur brut réel (RIBR). Des mesures superlatives des effets des termes de l’échange et du taux de change réel confirment ce point de vue, les gains d’échange s’élevant à 4,8 % du PIB entre 2002 et 2005. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-13-4-Kohli.pdf)