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Income-Related Biases in International Trade: What Do Trademark Registration Data Tell Us?

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  • Carsten Fink
  • Beata Smarzynska Javorcik

    ()

  • Mariana Spatareanu

Abstract

Economists have long recognized that richer countries trade more among themselves than with poorer economies due to a closer match of exporter supply structures and importer preferences. In the literature, the closeness of supply and demand has traditionally been determined by the quality of products-as expressed in the so-called Linder hypothesis. This paper examines an extension of the Linder hypothesis by also considering the extent of horizontal product differentiation as another determinant of the closeness of supply and demand. The empirical analysis employs information on international trademark registrations to test whether richer countries import more from countries whose exports are of higher quality and exhibit a greater degree of product differentiation. The results lend support to the hypothesis in most consumer goods sectors but not in intermediate goods sectors.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 141 (2005)
Issue (Month): 1 (April)
Pages: 79-103

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Handle: RePEc:spr:weltar:v:141:y:2005:i:1:p:79-103

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Related research

Keywords: Linder hypothesis; trademarks; product differentiation;

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References

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  1. Benjamin Klein & Keith B. Leffler, 1980. "Non-Governmental Enforcement of Contracts: The Role of Market Forces in Assuring Quality," UCLA Economics Working Papers 177, UCLA Department of Economics.
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  14. Sullivan, M., 2001. "How Many Trademarks Does it Take to Protect a Brand? The Optimal Number of Trademarks, Branding Strategy and Brand Performance," Papers 01-2, U.S. Department of Justice - Antitrust Division.
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  16. Baroncelli, Eugenia & Kink, Carsten & Smarzynska Javorcik, Beata, 2004. "The global distribution of trademarks - some stylized facts," Policy Research Working Paper Series 3270, The World Bank.
  17. Kevin M.Shleifer Murphy & Andrei, 1991. "Quality and Trade," University of Chicago - George G. Stigler Center for Study of Economy and State 66, Chicago - Center for Study of Economy and State.
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Citations

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Cited by:
  1. Eugenia Baroncelli & Ekaterina Krivonos & Marcelo Olarreaga, 2007. "Trademark Protection or Protectionism?," Review of International Economics, Wiley Blackwell, vol. 15(1), pages 126-145, 02.
  2. Baroncelli, Eugenia & Kink, Carsten & Smarzynska Javorcik, Beata, 2004. "The global distribution of trademarks - some stylized facts," Policy Research Working Paper Series 3270, The World Bank.
  3. Dhakal, Dharmendra & Pradhan, Gyan & Upadhyaya, Kamal P., 2011. "ÔÇťAnother Empirical Look at the Theory of Overlapping Demands - Un altro sguardo empirico alla teoria delle overlapping demands," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 64(1), pages 103-113.

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