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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.

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Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2009/43.

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Length: 27 page
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:hub:wpecon:200943
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  1. 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.
  2. Michael Funke & Ralf Ruhwedel, 1999. "Product Variety and Economic Growth-Empirical Evidence for the OECD Countries," CRIEFF Discussion Papers 9906, Centre for Research into Industry, Enterprise, Finance and the Firm.
  3. Paul M. Romer, 1993. "New Goods, Old Theory, and the Welfare Costs of Trade Restrictions," NBER Working Papers 4452, National Bureau of Economic Research, Inc.
  4. David Hummels & Alexandre Skiba, 2002. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," NBER Working Papers 9023, National Bureau of Economic Research, Inc.
  5. Richard Frensch & Vitalija Gaucaite-Wittich, 2006. "Product variety and technical change," Working Papers 265, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  6. Fajgelbaum, Pablo & Grossman, Gene M. & Helpman, Elhanan, 2011. "Income distribution, product quality, and international trade," Policy Research Working Paper Series 5843, The World Bank.
  7. 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.
  8. Konings, Jozef & Vandenbussche, Hylke, 2004. "Antidumping Protection and Productivity Growth of Domestic Firms," CEPR Discussion Papers 4620, C.E.P.R. Discussion Papers.
  9. Costas Arkolakis & Svetlana Demidova & Peter J. Klenow & Andrés Rodríguez-Clare, 2008. "Endogenous Variety and the Gains from Trade," NBER Working Papers 13933, National Bureau of Economic Research, Inc.
  10. John Sutton, 2007. "Quality, Trade and the Moving Window: The Globalisation Process," Economic Journal, Royal Economic Society, vol. 117(524), pages F469-F498, November.
  11. Amiti, Mary & Khandelwal, Amit, 2009. "Competition and Quality Upgrading," CEPR Discussion Papers 7562, C.E.P.R. Discussion Papers.
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