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On the Measurement of Changes in Product Quality in Marginal Intra-Industry Trade

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  • Abdul K. M. Azhar
  • Robert J. R. Elliott

    ()

Abstract

There is a long established thread of the international trade literature concerned with the measurement of intra-industry trade (IIT). Two distinct strands of the literature have developed: First, measures of marginal IIT that are concerned with the adjustment implications of volume-based changes in IIT; second, measures of vertical and horizontal IIT that are concerned with quality-based differences in IIT. This paper marries the two literatures to provide a new perspective on the smooth adjustment hypothesis debate and suggests the use of the marginal product quality index, a new measure of changes in quality in matched trade changes that complements dynamic measures of volume-based IIT.

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Bibliographic Info

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

Volume (Year): 144 (2008)
Issue (Month): 2 (July)
Pages: 225-247

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Handle: RePEc:spr:weltar:v:144:y:2008:i:2:p:225-247

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Related research

Keywords: Intra-industry trade; adjustment costs; quality; product differentiation;

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References

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  25. Stiglitz, Joseph E, 1987. "The Causes and Consequences of the Dependence of Quality on Price," Journal of Economic Literature, American Economic Association, vol. 25(1), pages 1-48, March.
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  28. Abdul K. M. Azhar & Robert J. R. Elliott, 2006. "On the Measurement of Product Quality in Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 142(3), pages 476-495, October.
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Citations

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Cited by:
  1. Valerija Botrić, 2013. "Determinants of Intra-industry Trade between Western Balkans and EU-15: Evidence from Bilateral Data," International Journal of Economic Sciences and Applied Research (IJESAR), Technological Educational Institute (TEI) of Kavala, Greece, vol. 6(2), pages 7-23, September.
  2. Abdul Azhar & Robert Elliott, 2011. "A Measure of Trade Induced Adjustment in Volume and Quality Space," Open Economies Review, Springer, Springer, vol. 22(5), pages 955-968, November.
  3. Ufuk Gunes Bebek, 2011. "Robustness of the Proposed Measures of Revealed Comparative Advantage," Studies in Economics, Department of Economics, University of Kent 1121, Department of Economics, University of Kent.
  4. Mastooreh Eshraghi & Normaz Wana Ismail, 2013. "Intra Industry Trade and Product Quality: China and Eight Developing Countries," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 12(1), pages 59-72, June.
  5. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2010. "Trade Patterns and International Technology Spillovers:Theory and Evidence from Patent Citations," Discussion papers e-10-006, Graduate School of Economics Project Center, Kyoto University, revised Mar 2011.

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