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Trade collapse, quality and food exports

Author

Listed:
  • D. Curzi
  • L. Pacca
  • A. Olper

Abstract

This article revisits the so-called 'Collapse in Quality' hypothesis, according to which, during the 2008--2009 crisis, higher quality goods experienced a stronger export reduction compared to low-quality ones. Using disaggregated trade data from three European countries that traditionally export high-quality food products -- France, Italy and Spain -- we do not find any econometric evidence supporting this hypothesis. In contrast, we provide preliminary evidence for the concurrent hypothesis, namely that firms reduced their markup to preserve market share.

Suggested Citation

  • D. Curzi & L. Pacca & A. Olper, 2013. "Trade collapse, quality and food exports," Applied Economics Letters, Taylor & Francis Journals, vol. 20(18), pages 1614-1617, December.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:18:p:1614-1617
    DOI: 10.1080/13504851.2013.829191
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    References listed on IDEAS

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    1. Chen, Natalie & Imbs, Jean & Scott, Andrew, 2009. "The dynamics of trade and competition," Journal of International Economics, Elsevier, vol. 77(1), pages 50-62, February.
    2. Andrei A. Levchenko & Logan Lewis & Linda L. Tesar, 2009. "The Collapse of International Trade During the 2008-2009 Crisis: In Search of the Smoking Gun," Working Papers 592, Research Seminar in International Economics, University of Michigan.
    3. Christian Broda & David E. Weinstein, 2006. "Globalization and the Gains From Variety," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 541-585.
    4. Andrei A Levchenko & Logan T Lewis & Linda L Tesar, 2010. "The Collapse of International Trade during the 2008–09 Crisis: In Search of the Smoking Gun," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 58(2), pages 214-253, December.
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    Cited by:

    1. Curzi, Daniele & Pacca, Lucia, 2015. "Price, quality and trade costs in the food sector," Food Policy, Elsevier, vol. 55(C), pages 147-158.
    2. Štefan Bojnec & Imre Fertő, 2017. "Quality Upgrades of EU Agri-Food Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 269-279, February.
    3. Alessandro Olper & Daniele Curzi & Valentina Raimondi, 2017. "Imported Intermediate Inputs and Firms’ Productivity Growth: Evidence from the Food Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 280-300, February.
    4. Ferto, Imre & Bojnec, Stefan, 2015. "Quality upgrading in the European-Union agri-food exports," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204225, Agricultural Economics Society.

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