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Quality and trade with many countries and industries

Author

Listed:
  • Picard, P.M.
  • Tampieri, A.

Abstract

This paper investigates a trade model with horizontal and vertical product differentiations, many goods and many countries. It studies the impact of productivity, population changes and trade costs on the quality composition of exports. The analysis embeds within the same tractable model a series of empirical results, including Linder hypothesis and high-income countries’ specialization in high quality good production. It also shows that high-quality goods exhibiting a high degree of differentiation are traded only by high-income countries.

Suggested Citation

  • Picard, P.M. & Tampieri, A., 2024. "Quality and trade with many countries and industries," International Economics, Elsevier, vol. 180(C).
    • Handle: RePEc:eee:inteco:v:180:y:2024:i:c:s2110701724000805
    DOI: 10.1016/j.inteco.2024.100557
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    More about this item

    Keywords

    Vertical differentiation; Trade; Quality margin;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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