Term intermediate goods and services Definition : Goods and services that are used as inputs or components in the production of other goods. Gravity regressions indicate that in comparison to trade in final goods and services, imports of intermediates are more sensitive to trade costs and are less attracted by bilateral market size.

Intermediate goods are combined into the production of finished products, or what are termed final goods. Trade in intermediate inputs takes place mostly among developed countries and represents respectively 56% and 73% of overall trade flows in goods and services.

Intermediate goods are also referred to as producer goods. Intermediate Goods and Gross Domestic Product (GDP) Economists do not factor intermediate goods when they calculate gross domestic product (GDP).

This study analyses trade flows in intermediate goods and services among OECD countries and with their main trading partners.

Intermediate goods will be further processed before sold as final goods.

Intermediate goods are goods that are used by a business in the production of goods or services.

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