The Quality Gravity Model with an Application to Chinese Imported Fruits
AbstractDerived from unit value and the gravity model, this paper proposes a simple model to analyze the quality determinants of imported fruits in China, and finds that (1) both quantity and price are exogenous for quality, and quality decreases in quantity but increases in price; (2) the own-income elasticity of quality is 8.55 and the partner-income elasticity is only -0.08; and (3) distance and common boundary do not play significant roles in determining quality.
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Bibliographic InfoPaper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 67.
Date of creation: 08 Feb 2011
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Gravity model; Quality index; Quality Gravity model;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-02-19 (Agricultural Economics)
- NEP-ALL-2011-02-19 (All new papers)
- NEP-CIS-2011-02-19 (Confederation of Independent States)
- NEP-INT-2011-02-19 (International Trade)
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