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The unit values of internationally traded goods are heavily influenced by quality. We model this in an extended monopolistic competition framework where, in addition to choosing price, firms simultaneously choose quality. We allow countries to have non-homothetic demand for quality. The optimal...
Persistent link: https://www.econbiz.de/10010951151
's producers to upgrade the quality of the goods that they export. The paper first documents two stylized facts regarding the … effect of trade liberalization on export prices and its relation with product differentiation. Next, the paper develops a … raise its export price in industries where the scope for quality differentiation is large while to lower its export price in …
Persistent link: https://www.econbiz.de/10010951179
To study the effects of the dramatic economic reforms undertaken in India in the early 1990s on inequality, this paper examines Theil inequality as well as other inequality measures constructed using Indian household expenditure survey data from 1988-2005. Overall inequality shows some variation...
Persistent link: https://www.econbiz.de/10009228882
reducing fixed costs at various levels can be quite effective as export promotion devices, with the exports induced per dollar …
Persistent link: https://www.econbiz.de/10008727852
predicts that China's share of export markets should grow most rapidly where China's share is initially large. A corollary is … product, China's export unit values should be increasing in distance. We find strong support for this effect in our empirical …
Persistent link: https://www.econbiz.de/10005828989
New goods play a central role in many trade and growth models. We use detailed trade and firm-level data from a large developing economy--India--to investigate the relationship between declines in trade costs, the imports of intermediate inputs and domestic firm product scope. We estimate...
Persistent link: https://www.econbiz.de/10005829725
the export sector. We then estimate this model using pooled data on four pollutants over ten years. Econometric results …
Persistent link: https://www.econbiz.de/10005774739
Quota restrictions on United States imports of apparel and textiles under the multifibre arrangement (MFA) ended abruptly in January 2005. This change in policy was large, predetermined, and fully anticipated, making it an ideal natural experiment for testing the theory of trade policy. We focus...
Persistent link: https://www.econbiz.de/10005777886
In numerous studies, economists have found little empirical evidence that environmental regulations affect trade flows. In this paper, we propose and test several common explanations for why the effect of environmental regulations on trade may be difficult to detect. We demonstrate that while...
Persistent link: https://www.econbiz.de/10005089232
How does trade liberalization affect wages? This is the first paper to consider in theory and data how the impact of final and intermediate input tariff cuts on workers' wages varies with the global engagement of their firm. Our model predicts that a fall in output tariffs lowers wages at...
Persistent link: https://www.econbiz.de/10005575445