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The quality of parallel imports

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Author Info
Katherine M. Sauer () (University of Southern Indiana)
Abstract

This paper empirically analyzes the change in the quality of parallel import goods (goods that are traded without the permission of the intellectual property right holder) across countries over time. Index number methodology for assessing the changes in quality of traded goods is applied to goods subject to parallel import competition in the European Union during 1995-2004. The claim that parallel import competition leads to a reduction in quality over time is not substantiated after analyzing the changes in the quality of imports to Sweden and Finland (who joined the EU in 1995 and subsequently opened their markets to parallel trade) and comparing them to changes in quality in the rest of the EU.

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File URL: http://economicsbulletin.vanderbilt.edu/2008/volume6/EB-07F10023A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 6 (2008)
Issue (Month): 44 ()
Pages: 1-10
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:6:y:2008:i:44:p:1-10

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Related research
Keywords: parallel imports; quality;

Find related papers by JEL classification:
F1 - International Economics - - Trade

References listed on IDEAS
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  1. Feenstra, Robert C, 1988. "Quality Change under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 131-46, February. [Downloadable!] (restricted)
  2. Randi Boorstein & Robert C. Feenstra, 1987. "Quality Upgrading and its Welfare Cost in U.S. Steel Imports, 1969-74," NBER Working Papers 2452, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January. [Downloadable!] (restricted)
  4. Franklin Allen, 1984. "Reputation and Product Quality," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 311-327, Autumn. [Downloadable!] (restricted)
  5. Ganslandt, Mattias & Maskus, Keith E., 2004. "Parallel imports and the pricing of pharmaceutical products: evidence from the European Union," Journal of Health Economics, Elsevier, vol. 23(5), pages 1035-1057, September. [Downloadable!] (restricted)
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  6. Keith E. Maskus & Yongmin Chen, 2004. "Vertical Price Control and Parallel Imports: Theory and Evidence," Review of International Economics, Blackwell Publishing, vol. 12(4), pages 551-570, 09. [Downloadable!] (restricted)
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  7. Mark Bils & Peter J. Klenow, 2001. "Quantifying Quality Growth," American Economic Review, American Economic Association, vol. 91(4), pages 1006-1030, September. [Downloadable!] (restricted)
    Other versions:
  8. Aw, Bee Yan & Roberts, Mark J., 1986. "Measuring quality change in quota-constrained import markets: The Case of U.S. Footwear," Journal of International Economics, Elsevier, vol. 21(1-2), pages 45-60, August. [Downloadable!] (restricted)
  9. Malueg, David A. & Schwartz, Marius, 1994. "Parallel imports, demand dispersion, and international price discrimination," Journal of International Economics, Elsevier, vol. 37(3-4), pages 167-195, November. [Downloadable!] (restricted)
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  10. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June. [Downloadable!]
  11. Juan Carlos Hallak & Peter K. Schott, 2008. "Estimating Cross-Country Differences in Product Quality," NBER Working Papers 13807, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-16.

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