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OECD imports : diversification of suppliers and quality search

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  • Cadot, Olivier
  • Carrere, Celine
  • Strauss-Kahn, Vanessa

Abstract

This paper explores the evolution of OECD imports over time, measuring their concentration across origin countries at the product level. The authors find evidence of diversification followed, in the very last years of the sample period (post-2000), by a slight re-concentration. This re-concentration is entirely explained by the growing importance of Chinese products in OECD imports. They also find evidence of relatively more volatile concentration levels for goods with high quality heterogeneity, with temporary phases of re-concentration on goods with higher unit values. Both findings are consistent with a simple model of adverse selection and quality screening by OECD buyers predicting that diversification happens by"bouts"rather than continuously, with temporary re-concentration on higher-quality suppliers.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5627.

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Date of creation: 01 Apr 2011
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Handle: RePEc:wbk:wbrwps:5627

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Keywords: Markets and Market Access; Microfinance; Labor Policies; E-Business; Agribusiness&Markets;

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References

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Cited by:
  1. Aleksandra Parteka, 2013. "Trade Diversity And Stages Of Development - Evidence On Eu Countries," GUT FME Working Paper Series A 8, Faculty of Management and Economics, Gdansk University of Technology.
  2. Robert C. Feenstra & Philip A. Luck & Maurice Obstfeld & Katheryn N. Russ, 2014. "In Search of the Armington Elasticity," NBER Working Papers 20063, National Bureau of Economic Research, Inc.

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