OECD Imports: Diversification and quality search
AbstractThis paper explores the evolution of OECD imports over time and as a function of income levels, measuring the concentration of those imports across origin countries at the product level. We find evidence of diversification followed, in the very last years of the sample period (post-2000), by a slight reconcentration. This reconcentration is entirely explained by the growing importance of Chinese products in OECD imports. We also find evidence of relatively more volatile concentration levels for differentiated goods, consistent with a simple model of adverse selection and screening of suppliers by OECD buyers. Finally, we find that “accession” to OECD markets occurs directly (rather than after acquiring prior export experience on other markets) for more than half of the (extra-OECD) exporter/product pairs, but that one to eight years of experience enhances subsequent survival on OECD markets. Exports that reach OECD markets after more than eight years of experience elsewhere tend to survive less.
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Bibliographic InfoPaper provided by CERDI in its series Working Papers with number 200909.
Date of creation: 2009
Date of revision:
Import diversification; international trade; OECD;
Other versions of this item:
- Cadot, Olivier & Kukenova, Madina & Strauss-Kahn, Vanessa, 2010. "OECD imports : diversification and quality search," Policy Research Working Paper Series 5285, The World Bank.
- Olivier Cadot & Céline Carrere & Madina Kukenova & Vanessa Strauss-Khan, 2011. "OECD Imports: Diversification and quality search," Working Papers halshs-00554319, HAL.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
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