'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 …

'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 …

liberalization on export prices. Next, an analytic framework is developed that relates a firm's choice of quality to its access to … imported intermediates. In the model a reduction in import tariffs induces a firm to increase export quality and to raise its … export price in industries where the scope for quality differentiation is large while to lower its export price in industries …