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Exports' quality-adjusted productivity and economic growth

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  • Asier Minondo

Abstract

According to recent studies, countries specialised in products associated with higher productivity levels are likely to grow faster than countries specialised in other goods. A limitation of these studies is that they do not control for quality differences within a product category when measuring goods' productivity level. In this paper we show that if products are distinguished by quality level there is no longer a robust relationship between specialising in products associated with higher productivity levels and faster growth. On the contrary, we find it is the specialisation in products that allow a larger room for quality improvement that leads to higher economic growth.

Suggested Citation

  • Asier Minondo, 2010. "Exports' quality-adjusted productivity and economic growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(2), pages 257-287.
  • Handle: RePEc:taf:jitecd:v:19:y:2010:i:2:p:257-287
    DOI: 10.1080/09638190802573071
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    Cited by:

    1. Juthathip Jongwanich, 2022. "Free Trade Agreements (FTAs) and Export Structures in Thailand," Discussion Papers 20230617, Thammasat University, Faculty of Economics, revised May 2022.
    2. Daniele Curzi & Lucia Pacca & Alessandro Olper, 2013. "Estimating Food Quality from Trade Data: An Empirical Assessment," LICOS Discussion Papers 33913, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. repec:ilo:ilowps:468791 is not listed on IDEAS
    4. Carbone, Anna & Henke, Roberto & Pozzolo, Alberto F., 2015. "Italian agri-food exports in the international arena," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 4(1), pages 1-21, April.
    5. Dang Luu Hai, 2021. "Aid for trade and export sophistication in recipient countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(4), pages 530-548, May.
    6. Brenton, Paul & Newfarmer, Richard & Walkenhorst, Peter, 2009. "Avenues for Export Diversification: Issues for Low-Income Countries," MPRA Paper 22758, University Library of Munich, Germany.
    7. Burak Sencer Atasoy, 2021. "The determinants of export sophistication: Does digitalization matter?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5135-5159, October.
    8. Iraj Hashi & Nebojša Stojčić, 2013. "Knowledge Spillovers, Innovation Activities, And Competitiveness Of Industries In Eu Member And Candidate Countries," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 58(198), pages 7-34, July - Se.
    9. Huiying Zhang & Xiaohui Yang, 2016. "Intellectual Property Rights and Export Sophistication," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-19, October.
    10. Dong Xuan Nguyen, 2016. "Trade liberalization and export sophistication in Vietnam," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(8), pages 1071-1089, November.
    11. Yixiao Zhou, 2018. "Human capital, institutional quality and industrial upgrading: global insights from industrial data," Economic Change and Restructuring, Springer, vol. 51(1), pages 1-27, February.
    12. Zhu, Shujin & Fu, Xiaolan, 2013. "Drivers of Export Upgrading," World Development, Elsevier, vol. 51(C), pages 221-233.
    13. Quang Hoan Truong & Van Chung Dong, 2023. "Impacts of FDI Presence and Product Sophistication on the Demand for Skilled and Unskilled Labour: Evidence from SMEs in Viet Nam," Working Papers DP-2022-40, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. Idrys Fransmel Okombi & Beaudelaire Francois Tsinguia-Kenfack, 2024. "Foreign direct investment and economic complexity in developing countries: does public expenditure on education matter?," SN Business & Economics, Springer, vol. 4(1), pages 1-38, January.
    15. Paul Brenton & Peter Walkenhorst, 2009. "Breaking into New Markets, Raising Quality, and Improving Services : Neglected Avenues for Export Diversification," World Bank Publications - Reports 11109, The World Bank Group.
    16. Baliamoune-Lutz, Mina, 2019. "Trade sophistication in developing countries: Does export destination matter?," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 39-51.
    17. Alessandro ANTIMIANI & Anna CARBONE & Valeria COSTANTINI & Roberto HENKE, 2012. "Agri-food exports in the enlarged European Union," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(8), pages 354-366.
    18. 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.
    19. Martin Grancay & Nora Grancay & Tomas Dudas, 2015. "What You Export Matters: Does It Really?," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 9(2), June.
    20. Uexküll, Erik von., 2012. "Regional trade and employment in ECOWAS," ILO Working Papers 994687913402676, International Labour Organization.
    21. Ms. Stephanie C Medina Cas & Mr. Andrew J Swiston & Mr. Luis D Barrot, 2012. "Central America, Panama, and the Dominican Republic: Trade Integration and Economic Performance," IMF Working Papers 2012/234, International Monetary Fund.
    22. Sergey Kadochnikov & Anna Fedyunina, 2013. "Export diversification in the product space and regional growth: Evidence from Russia," Papers in Evolutionary Economic Geography (PEEG) 1327, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2013.
    23. Naoki Sekiguchi, 2019. "Steel trade structure and the balance of steelmaking technologies in non-OECD countries: the implications for catch-up path," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(3), pages 257-285, November.
    24. Filippo Bontadini, 2019. "Power and Export Sophistication in Buyer-Supplier Relationships: Insights from Colombian Customs Data," SPRU Working Paper Series 2019-11, SPRU - Science Policy Research Unit, University of Sussex Business School.

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    Keywords

    productivity; exports; growth;
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