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The Variety Effects of Trade Liberalization

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  • Chen, Shenjie

Abstract

This paper contributes to empirical literature on trade in variety in the following two areas. First, it uses the World Intellectual Property Office (WIPO)’s crosscountry trademark registration statistics to measure the recent trends in global trade in varieties. It confirms Haveman and Hummels’ hypothesis that nations are trading far fewer varieties than commonly supposed, and there is a strong “home bias’ in the global production and consumption of differentiated products. Languages, trade liberalization, distances, and per capita income matter in trade in variety. Second, it uses Canadian Intellectual Property Office’s and U.S. Intellectual Patent Office’s trademark databases to track the bilateral trade in variety between Canada and the U.S. at detailed industrial levels. It finds that the CANUSFTA has significantly enhanced each country’s access to varieties.

Suggested Citation

  • Chen, Shenjie, 2004. "The Variety Effects of Trade Liberalization," Conference papers 331222, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331222
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