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Export quality in advanced and developing economies: Evidence from a new dataset

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  • Henn, Christian
  • Papageorgiou, Chris
  • Spatafora, Nikolas

Abstract

This paper develops new estimates of export quality, far more extensive than previous efforts, covering 178 countries and hundreds of products during the period 1962-2010. It finds that quality upgrading is particularly rapid during the early stages of development, with the process largely completed as a country reaches upper middle-income status. There is significant crosscountry heterogeneity in the growth rate of quality. Within any given product line, quality converges over time to the world frontier. Institutional quality, liberal trade policies, FDI inflows, and human capital all promote quality upgrading, although their impact varies across sectors. The results suggest that reducing barriers to entry into new sectors can allow economies to benefit from rapid quality convergence over time.

Suggested Citation

  • Henn, Christian & Papageorgiou, Chris & Spatafora, Nikolas, 2015. "Export quality in advanced and developing economies: Evidence from a new dataset," WTO Staff Working Papers ERSD-2015-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:ersd201502
    DOI: 10.30875/72e7d4c3-en
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    More about this item

    Keywords

    Volumes; Export prices; Quality ladders; Upgrading; Sector development;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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