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How geography affects quality

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  • Lugovskyy, Volodymyr
  • Skiba, Alexandre

Abstract

This paper connects the quality of product-level bilateral trade flows with the geographic position of the exporter. Theoretically we show that, in addition to commonly used importer characteristics, quality increases (i) in trade-weighted specific transportation cost to destinations other than the importer and (ii) in trade-weighted preference for quality of destinations other than the importer. These two channels extend the familiar Alchian–Allen and Linder theories to the multilateral setting.

Suggested Citation

  • Lugovskyy, Volodymyr & Skiba, Alexandre, 2015. "How geography affects quality," Journal of Development Economics, Elsevier, vol. 115(C), pages 156-180.
    • Handle: RePEc:eee:deveco:v:115:y:2015:i:c:p:156-180
    DOI: 10.1016/j.jdeveco.2015.01.005
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    References listed on IDEAS

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    4. Latzer, Hélène & Mayneris, Florian, 2021. "Average income, income inequality and export unit values," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 625-646.
    5. Carballo, Jerónimo & Schaur, Georg & Graziano, Alejandro & Volpe Martincus, Christian, 2016. "Transit Trade," IDB Publications (Working Papers) 7688, Inter-American Development Bank.
    6. Jerónimo Carballo & Georg Schaur & Alejandro Graziano & Christian Volpe Martincus, 2016. "Transit Trade," IDB Publications (Working Papers) 94658, Inter-American Development Bank.
    7. Dorothee Hillrichs, 2023. "The global geography of income and export patterns," LIDAM Discussion Papers IRES 2023001, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Campbell, Jason, 2024. "The link between import sources and export success: Evidence from China," International Economics, Elsevier, vol. 178(C).
    9. Lugovskyy, Volodymyr & Skiba, Alexandre, 2016. "Positive and negative effects of distance on export prices," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 155-181.
    10. Jonathan I. Dingel, 2017. "The Determinants of Quality Specialization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(4), pages 1551-1582.
    11. Yuichiro Matsumoto, 2018. "Nonlinear Effects of the Transport Costs on the Wage Inequality," Discussion Papers in Economics and Business 18-07, Osaka University, Graduate School of Economics.
    12. Lashkaripour, Ahmad, 2020. "Weight-based quality specialization," Journal of International Economics, Elsevier, vol. 127(C).
    13. Ardelean,Adina Teodora & Lugovskyy,Volodymyr & Skiba,Alexandre & Terner,David Michael, 2022. "Fathoming Shipping Costs : An Exploration of Recent Literature, Data, and Patterns," Policy Research Working Paper Series 9992, The World Bank.
    14. Yilmazkuday, Hakan, 2016. "Constant versus variable markups: Implications for the law of one price," International Review of Economics & Finance, Elsevier, vol. 44(C), pages 154-168.
    15. Beguin, Malo, 2021. "Harmonization, Mutual Recognition or National Treatment: a Melitz approach," LIDAM Discussion Papers LFIN 2021010, Université catholique de Louvain, Louvain Finance (LFIN).
    16. Lashkaripour, Ahmad, 2020. "Discrete trade," Journal of International Economics, Elsevier, vol. 126(C).

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