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CPS2118 Yang Wang
Z kt  Y kt * P kt XM (19)
Z Y P XM
k ( 1)t k ( 1)t k ( 1)t

4. Discussion and Conclusion
Based on production theory and translog GDP methodology introduced
by Diewert and Morrison (1986), we further extend Inklaar and Diewert
(2016)’s framework to simultaneously calculate real GDP on expenditure-side
and output-side and isolate the effect of terms of trade on real GDP ,which
enables us to measure the real GDP on both output-side and expenditure-side
and the contribution of terms of trade to the real GDP growth across space
and time in a more consistent way.
Empirical research should be done in next step. The input data are PPPs
data for domestic consumption, export and import. We can get these from
PWT 9.0. After estimating the real GDP on expenditure-side and output-side,
these results can be compared with datasets such as PWT, WDI, UQICD et al.
The estimates for terms of trade contribution factor can be compared with the
existing works based on time dimension.

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