Price and quality competitiveness of socialist countries'exports
AbstractIn this report the authors have analyzed pricing of the centrally planned economies (CPEs) in the highly competitive export markets of the EC countries in the first half of the 1980s. They found that the CPEs'export prices were lower than prices in both developed and developing countries. Manufactured goods from CPEs were underpriced an average 31 to 45 percent - even more on some commodities. Protection of EC countries doesn't seem to be a factor in CPE underpricing of manufactured goods. This could not be explained either by a deliberate policy of CPEs to penetrate Western markets. The CPEs inability to upgrade manufactured exports that are subject to quotas suggests serious quality constraints on exports of manufactured goods. They appear to underprice their manufactured exports not because of cost advantages that make them more competitive, but because most of their manufactured goods are inferior in quality to their competitors.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 317.
Date of creation: 31 Dec 1989
Date of revision:
Environmental Economics&Policies; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Economic Theory&Research; Markets and Market Access; Access to Markets;
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- Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
- Falvey, Rodney E, 1979. "The Composition of Trade within Import-restricted Product Categories," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1105-14, October.
- Aw, Bee Yan & Roberts, Mark J., 1986. "Measuring quality change in quota-constrained import markets: The Case of U.S. Footwear," Journal of International Economics, Elsevier, vol. 21(1-2), pages 45-60, August.
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