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The Micro-D classification: a new approach to identifying differentiated exports

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  • Bernini, Federico
  • González, Julia
  • Hallak, Juan Carlos
  • Vicondoa, Alejandro

Abstract

It is common to assess the evolution of a country’s export structure as a manifestation of the extent of progress or stagnation in its development process. Performing this exercise requires determining which features of exported products denote higher stages in that process. We argue that exports of differentiated products, especially when sold to developed countries, signal the acquisition of valuable knowledge that reflects development progress. We propose a new classification, denoted Micro-D, that works at the finest aggregation level in customs nomenclatures to provide a more precise identification of differentiated products. Specifically, the classification uses package size as a proxy for product differentiation to identify differentiated food and beverage exports. Thus, it is especially—though not exclusively—suited to capturing export upgrading in land-abundant developing countries. We apply the Micro-D classification to Argentina in 1998–2011 to deliver a new picture of the country’s sources of export upgrading in this period.

Suggested Citation

  • Bernini, Federico & González, Julia & Hallak, Juan Carlos & Vicondoa, Alejandro, 2018. "The Micro-D classification: a new approach to identifying differentiated exports," LSE Research Online Documents on Economics 123394, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:123394
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    References listed on IDEAS

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    1. A. Aggarwal, 2002. "Liberalisation, Multinational Enterprises and Export Performance: Evidence from Indian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 119-137.
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    6. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
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    Cited by:

    1. Fares, Florencia Melisa & Zack, Guido & Martínez, Ricardo Gabriel, 2020. "Sectoral Price and Quantity Indexes of Argentine Foreign Trade," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue No. 93, pages 297-328, July.
    2. Bastos, Paulo & Silva, Joana, 2010. "The quality of a firm's exports: Where you export to matters," Journal of International Economics, Elsevier, vol. 82(2), pages 99-111, November.
    3. Palazzo, Gabriel & Rapetti, Martín, 2023. "From macro to micro and macro back: Macroeconomic trade elasticities in a developing economy," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 223-252.
    4. Federico Bernini & Ezequiel Garcia Lembergman, 2020. "The impact of import barriers on firm performance: Evidence from Import Licenses in Argentina," Asociación Argentina de Economía Política: Working Papers 4314, Asociación Argentina de Economía Política.
    5. Irene Brambilla & Guido Porto, 2018. "Diagnóstico y Visión de la Inserción Comercial Argentina en el Mundo," IIE, Working Papers 115, IIE, Universidad Nacional de La Plata.
    6. Santiago Camara, 2022. "Does an increase in the cost of imported inputs hurt exports? Evidence from firms' network of foreign suppliers," Papers 2202.12811, arXiv.org.
    7. Andrea González & Juan Carlos Hallak & Gabriel Scattolo & Andres Tacsir, 2021. "Requisitos técnicos, integración regional y respuestas empresariales: los casos de arándanos y maquinaria agrícola en Argentina," Documentos de trabajo del Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET) 2021-59, Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET).
    8. Hallak Juan Carlos, 2023. "La Necesidad De Una Orientación Pro-Exportadora De Políticas En Argentina," Asociación Argentina de Economía Política: Working Papers 4659, Asociación Argentina de Economía Política.

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    More about this item

    Keywords

    differentiated products; exports; classification;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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