This paper presents a unified framework for analyzing several factors that have been independently studied as determinants of unit values in international trade: product differentiation by quality (which suggests that unit values should be positively correlated with exporters' per capita...

It has become increasingly common to produce goods in a number of geographically dispersed stages linked by international trade. This tendency, known by names such as "production fragmentation", "processing trade", and "vertical specialization", has important implications for the analysis of...