Recent development in international trade theory gives growing emphasis to the quality of the exported products, showing that it affects both the direction of trade and the countries’ export performances. However, as quality is unobservable, a measurement problem clearly emerges. In this paper...

This paper documents patterns in international trade costs in processed foods for a large cross-section of developing and developed countries, during the 1976-2000 period. A trade costs index is inferred from a micro-founded gravity equation that incorporates bilateral 'iceberg' trade costs. For...