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Quality Upgrading and Export Performance in the Asian Growth Miracle

Author

Listed:
  • Mr. Chris Papageorgiou
  • Fidel Perez-Sebastian
  • Mr. Nikola Spatafora

Abstract

We explore the contribution of product-quality upgrading to the export performance of six fast-growing Asian economies: China, India, Indonesia, Malaysia, South Korea, and Thailand. We focus on measuring the impact of quality upgrading on the changes in these countries’ sectoral export shares during 1970–2010. We build a multisector Ricardian trade model which allows for changes in product quality, and calibrate it to generate predictions about export volumes. Unlike previous literature, our approach allows estimation without employing domestic production data. Our results point to quality upgrading being a key driver of export shares.

Suggested Citation

  • Mr. Chris Papageorgiou & Fidel Perez-Sebastian & Mr. Nikola Spatafora, 2019. "Quality Upgrading and Export Performance in the Asian Growth Miracle," IMF Working Papers 2019/259, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2019/259
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    References listed on IDEAS

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    7. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
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    Cited by:

    1. Gideon Ndubuisi & Solomon Owusu, 2021. "How important is GVC participation to export upgrading?," The World Economy, Wiley Blackwell, vol. 44(10), pages 2887-2908, October.
    2. Gideon Ndubuisi & Solomon Owusu, 2022. "Trust, Efficient Contracting and Export Upgrading," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2708-2729, December.

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