This paper investigates how devaluation by a small open economy affects its export quality when higher quality requires more of skilled labour and capital; and the ramifications of such quality changes on employment of unskilled labour and real income. In a competitive general equilibrium...

Given the increasing sensitivity of buyers in the richer countries towards quality of goods they consume, low-quality exports largely constrain export-growth of the developing countries. This element documents the attempts to estimate cross-country quality variations and reviews the demand and...