IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/508.html
   My bibliography  Save this paper

The Quality of Production of Textiles and Clothing and the Completion of the Internal Market

Author

Listed:
  • Faini, Riccardo
  • Heimler, Alberto

Abstract

We evaluate the quality differentials between developing and developed countries' textiles and clothing exports. Theoretical analyses often conclude that protection leads to quality upgrading (downgrading) of imports (domestic production), while recent empirical work suggests that it shifts the quality of foreign and domestic goods in the same direction. Using a simple duopoly model, in which average production costs decline more rapidly (or increase less sharply) for higher quality goods, we find that protection enables domestic producers to increase their share of the higher quality market segment. We compute multilateral Fisher Ideal price and quality indices for imports into the four major EC countries and find that quality differences explain about half the differences among the unit values of exporters to each market. There are also substantial quality differentials between developed and developing countries for textiles, but not for clothing products. Finally, even after controlling for quality effects, we find large price differentials across EC markets, particularly for developing countries' exports, which the completion of the internal market in 1992 should help to compress.

Suggested Citation

  • Faini, Riccardo & Heimler, Alberto, 1991. "The Quality of Production of Textiles and Clothing and the Completion of the Internal Market," CEPR Discussion Papers 508, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:508
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=508
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:kap:iaecre:v:6:y:2000:i:4:p:619-632 is not listed on IDEAS
    2. Ingeborg Menzler-Hokkanen & Rolf Langhammer, 1994. "Product and country substitution in imports: An empirical comparison of theoretical concepts," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(2), pages 309-328, June.
    3. Riccardo Faini & Jaime Melo & Wendy Takacs, 1995. "A Primer on the MFA Maze," The World Economy, Wiley Blackwell, vol. 18(1), pages 113-135, January.
    4. David Greenaway & Robert Hine & Chris Milner, 1994. "Country-specific factors and the pattern of horizontal and vertical intra-industry trade in the UK," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(1), pages 77-100, March.
    5. Menzler-Hokkanen, Ingeborg & Spinanger, Dean & Langhammer, Rolf J., 1992. "Identifying sources of unit value dynamics in international trade," Kiel Working Papers 551, Kiel Institute for the World Economy (IfW).
    6. Inmaculada Martínez-Zarzoso & Celestino Burguet, 2000. "Measurement of export prices and changes in product quality," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(4), pages 619-632, November.

    More about this item

    Keywords

    Protection; Quality; Textiles and Clothing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:508. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.