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Variety and quality in intra-European manufacturing trade: the impact of innovation and technological spillovers

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  • Jan Van Hove

Abstract

Recent analysis of detailed product-level trade data points to substantial heterogeneity in variety and quality patterns in international trade. We study the evidence of variety and quality of manufacturing trade among European Union countries. The existing methodology is extended by distinguishing between various industrial sectors. In particular we focus on the role of technological innovation and technological spillovers. Although the impact of technological innovation depends on the innovation measure used, there appears to be a quality-upgrading effect originating from innovation. Moreover, technological spillovers increase both the variety and quality of intra-European trade.

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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 13 (2010)
Issue (Month): 1 ()
Pages: 43-59

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Handle: RePEc:taf:jecprf:v:13:y:2010:i:1:p:43-59

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Keywords: international trade; quality; variety; unit values; extensive margin; intensive margin;

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  1. Fajgelbaum, Pablo & Grossman, Gene M. & Helpman, Elhanan, 2011. "Income distribution, product quality, and international trade," Policy Research Working Paper Series 5843, The World Bank.
  2. By Michael Funke & Ralf Ruhwedel, 2001. "Product Variety and Economic Growth: Empirical Evidence for the OECD Countries," IMF Staff Papers, Palgrave Macmillan, vol. 48(2), pages 1.
  3. Amiti, Mary & Khandelwal, Amit, 2009. "Competition and Quality Upgrading," CEPR Discussion Papers 7562, C.E.P.R. Discussion Papers.
  4. Raphael Kaplinsky & Amelia U. Santos-Paulino, 2006. "A disaggregated analysis of EU imports: the implications for the study of patterns of trade and technology," Cambridge Journal of Economics, Oxford University Press, vol. 30(4), pages 587-611, July.
  5. Costas Arkolakis & Svetlana Demidova & Peter J. Klenow & Andrés Rodríguez-Clare, 2008. "Endogenous Variety and the Gains from Trade," NBER Working Papers 13933, National Bureau of Economic Research, Inc.
  6. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February.
  7. Juan Carlos Hallak & Peter K. Schott, 2008. "Estimating Cross-Country Differences in Product Quality," NBER Working Papers 13807, National Bureau of Economic Research, Inc.
  8. David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
  9. Konings, Jozef & Vandenbussche, Hylke, 2004. "Antidumping Protection and Productivity Growth of Domestic Firms," CEPR Discussion Papers 4620, C.E.P.R. Discussion Papers.
  10. John Sutton, 2007. "Quality, Trade and the Moving Window: The Globalisation Process," Economic Journal, Royal Economic Society, vol. 117(524), pages F469-F498, November.
  11. Richard Frensch & Vitalija Gaucaite-Wittich, 2006. "Product variety and technical change," Working Papers 265, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
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Cited by:
  1. Türkcan, Kemal, 2014. "Exports Margins in Austria’s Export Growth," MPRA Paper 53085, University Library of Munich, Germany.
  2. Kemal Türkcan, 2014. "Investigating the Role of Extensive Margin, Intensive Margin, Price and Quantity Components on Turkey’s Export Growth during 1998-2011," Working Papers 2014/2, Turkish Economic Association.

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