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Quality-biased technical progress and North-South trade

Author

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  • Brian Copeland
  • Ashok Kotwal

Abstract

This paper investigates the welfare effects on the South of quality-biased technical progress in North's export sector. North exports a quality-differentiated good. while South exports a homogeneous good. We find that if northern technical progress is quality-neutral, the South must gain, but if technical progress is sufficiently biased towards high quality goods, the South can lose. This is in contrast to the case of homogeneous goods, where the South must always gain from technical progress in North's export sector if both goods are normal.

Suggested Citation

  • Brian Copeland & Ashok Kotwal, 1997. "Quality-biased technical progress and North-South trade," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 6(1), pages 1-14.
    • Handle: RePEc:taf:jitecd:v:6:y:1997:i:1:p:1-14
    DOI: 10.1080/09638199700000001
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    Cited by:

    1. Funk, Peter, 1998. "Satiation and underdevelopment," Journal of Development Economics, Elsevier, vol. 57(2), pages 319-341.
    2. Sanjay Jain, 2021. "Informal employment or informal firms? Regulatory enforcement and the transformation of the informal sector," WIDER Working Paper Series wp-2021-123, World Institute for Development Economic Research (UNU-WIDER).
    3. Fan, C. Simon, 2004. "Quality, trade, and growth," Journal of Economic Behavior & Organization, Elsevier, vol. 55(2), pages 271-291, October.

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