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Variety and Quality in Intra-European Manufacturing Trade: The Impact of Innovation and Technological Spillovers


  • Van Hove, Jan

    () (Hogeschool-Universiteit Brussel (HUB), Belgium; Katholieke Universiteit Leuven, Leuven Centre for Irish Studies and Centre for Economic Studies)


Recent analysis of detailed product-level trade data points to substantial heterogeneity in variety and quality patterns in international trade. We study the evidence of variety and quality of manufacturing trade among European Union countries. The existing methodology is extended by distinguishing between various industrial sectors. In particular we focus on the role of technological innovation and technological spillovers. Although the impact of technological innovation depends on the innovation measure used, there appears to be a quality-upgrading effect originating from innovation. Moreover, technological spillovers increase both the variety and quality of intra-European trade.

Suggested Citation

  • Van Hove, Jan, 2009. "Variety and Quality in Intra-European Manufacturing Trade: The Impact of Innovation and Technological Spillovers," Working Papers 2009/43, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  • Handle: RePEc:hub:wpecon:200943

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    References listed on IDEAS

    1. By Michael Funke & Ralf Ruhwedel, 2001. "Product Variety and Economic Growth: Empirical Evidence for the OECD Countries," IMF Staff Papers, Palgrave Macmillan, vol. 48(2), pages 1-1.
    2. Frensch, Richard & Gaucaite Wittich, Vitalija, 2009. "Product variety and technical change," Journal of Development Economics, Elsevier, vol. 88(2), pages 242-257, March.
    3. Pablo Fajgelbaum & Gene M. Grossman & Elhanan Helpman, 2011. "Income Distribution, Product Quality, and International Trade," Journal of Political Economy, University of Chicago Press, vol. 119(4), pages 721-765.
    4. repec:hrv:faseco:30722111 is not listed on IDEAS
    5. Romer, Paul, 1994. "New goods, old theory, and the welfare costs of trade restrictions," Journal of Development Economics, Elsevier, vol. 43(1), pages 5-38, February.
    6. David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
    7. Amiti, Mary & Khandelwal, Amit, 2009. "Competition and Quality Upgrading," CEPR Discussion Papers 7562, C.E.P.R. Discussion Papers.
    8. Costas Arkolakis & Svetlana Demidova & Peter J. Klenow & Andres Rodriguez-Clare, 2008. "Endogenous Variety and the Gains from Trade," American Economic Review, American Economic Association, vol. 98(2), pages 444-450, May.
    9. Juan Carlos Hallak & Peter K. Schott, 2011. "Estimating Cross-Country Differences in Product Quality," The Quarterly Journal of Economics, Oxford University Press, vol. 126(1), pages 417-474.
    10. Konings, Jozef & Vandenbussche, Hylke, 2004. "Antidumping Protection and Productivity Growth of Domestic Firms," CEPR Discussion Papers 4620, C.E.P.R. Discussion Papers.
    11. John Sutton, 2007. "Quality, Trade and the Moving Window: The Globalisation Process," Economic Journal, Royal Economic Society, vol. 117(524), pages 469-498, November.
    12. Raphael Kaplinsky & Amelia U. Santos-Paulino, 2006. "A disaggregated analysis of EU imports: the implications for the study of patterns of trade and technology," Cambridge Journal of Economics, Oxford University Press, vol. 30(4), pages 587-611, July.
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    Cited by:

    1. Türkcan, Kemal, 2014. "Exports Margins in Austria’s Export Growth," MPRA Paper 53085, University Library of Munich, Germany.
    2. George Magoulios & Stergios Athianos, 2013. "The Trade Balance of Greece in the Euro Era," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 11(2), pages 187-216.
    3. Türkcan, Kemal, 2014. "Investigating the Role of Extensive Margin, Intensive Margin, Price and Quantity Components on Turkey’s Export Growth during 1998-2011," MPRA Paper 53292, University Library of Munich, Germany.
    4. Beata Bierut & Kamila Kuziemska-Pawlak, 2016. "Competitiveness and export performance of CEE countries," NBP Working Papers 248, Narodowy Bank Polski, Economic Research Department.
    5. Mahdi Ghodsi, 2015. "Determinants of Specific Trade Concerns Raised on Technical Barriers to Trade," wiiw Working Papers 115, The Vienna Institute for International Economic Studies, wiiw.
    6. repec:kap:empiri:v:45:y:2018:i:1:d:10.1007_s10663-016-9347-1 is not listed on IDEAS

    More about this item


    international trade; quality; variety; unit values; extensive margin; intensive margin;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade


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