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Evidence of Product Differentiation and Relative Quality in Italian Trade

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Author Info
Stefano Chiarlone () (CESPRI, Universita' Bocconi, Milano, Italy)

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Abstract

Intra-Industry Trade implies similar trade specialisation and is often associated with product differentiation. Differentiation depends on either quality or characteristics and two-way flows can be divided accordingly. If quality matters, we can measure relative quality of exports and imports. Our objective is to apply this analysis to Italian trade with industrialised countries. Our results suggest a prevalence of two-way flows at the aggregate level. This finding hides sectoral and bilateral heterogeneity. Vertical flows prevail over horizontal flows in most sectors and for most countries. That reduces the competitive concerns linked to the similar specialisation. Finally, quality of Italian exports is lower than that of imports, but seems to be increasing.

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File URL: ftp://ftp.unibocconi.it/pub/RePEc/cri/papers/wp114.pdf
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Publisher Info
Paper provided by CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy in its series CESPRI Working Papers with number 114.

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Length: 28 pages
Date of creation: Jul 2000
Date of revision: Jul 2000
Handle: RePEc:cri:cespri:wp114

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Web page: http://www.cespri.unibocconi.it/

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Related research
Keywords: Intra-Industry Trade; Trade specialisation; Quality and horizontal differentiation; Sectoral and bilateral Italian trade; Competitive pressure;

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Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October. [Downloadable!] (restricted)
  2. Greenaway, David, 1998. "Economic Geography, Comparative Advantage and Trade Within Industries: Evidence from the OECD," CEPR Discussion Papers 1857, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Lionel Fontagne & Michael Freudenberg, 1997. "Intra-Industry Trade : Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Roberta Rabellotti & Alessia Amighini, 2003. "The effect of globalisation on industrial districts in Italy: evidence from the footwear sector," ERSA conference papers ersa03p500, European Regional Science Association. [Downloadable!]
  2. Haroon Mumtaz & Özlem Oomen & Jian Wang, . "Exchange rate pass-through into UK import prices," Bank of England working papers 312, Bank of England. [Downloadable!]
  3. Alessia Amighini & Roberta Rabellotti, 2003. "the effects of globalization on italian industrial districts: evidence from the footwear sector," Working Papers 64, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont. [Downloadable!]
  4. Fabrizio Onida, 2003. "Growth, competitiveness and firm size: factors shaping the role of Italy’s productive system in the world arena," CESPRI Working Papers 144, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Jul 2003. [Downloadable!]
  5. Alessia Amighini & Stefano Chiarlone, 2004. "Risk of the Chinese trade integration for the Italian trade specialisation," LIUC Papers in Economics 150, Cattaneo University (LIUC). [Downloadable!]
  6. Hasan Faruq, 2006. "New Evidence on Product Quality and Trade," Caepr Working Papers 2006-019, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington. [Downloadable!]
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