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The quality of parallel imports

Author

Listed:
  • Katherine M. Sauer

    () (University of Southern Indiana)

Abstract

This paper empirically analyzes the change in the quality of parallel import goods (goods that are traded without the permission of the intellectual property right holder) across countries over time. Index number methodology for assessing the changes in quality of traded goods is applied to goods subject to parallel import competition in the European Union during 1995-2004. The claim that parallel import competition leads to a reduction in quality over time is not substantiated after analyzing the changes in the quality of imports to Sweden and Finland (who joined the EU in 1995 and subsequently opened their markets to parallel trade) and comparing them to changes in quality in the rest of the EU.

Suggested Citation

  • Katherine M. Sauer, 2008. "The quality of parallel imports," Economics Bulletin, AccessEcon, vol. 6(44), pages 1-10.
  • Handle: RePEc:ebl:ecbull:eb-07f10023
    as

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    References listed on IDEAS

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    1. Malueg, David A. & Schwartz, Marius, 1994. "Parallel imports, demand dispersion, and international price discrimination," Journal of International Economics, Elsevier, vol. 37(3-4), pages 167-195, November.
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    5. 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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    7. Ganslandt, Mattias & Maskus, Keith E., 2004. "Parallel imports and the pricing of pharmaceutical products: evidence from the European Union," Journal of Health Economics, Elsevier, vol. 23(5), pages 1035-1057, September.
    8. Randi Boorstein & Robert C. Feenstra, 1987. "Quality Upgrading and its Welfare Cost in U.S. Steel Imports, 1969-74," NBER Working Papers 2452, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    parallel imports;

    JEL classification:

    • F1 - International Economics - - Trade

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