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The Evolution of Trade Unit Values: A Measurement on Quality

Author

Listed:
  • Alexandra Bykova

    (The Vienna Institute for International Economic Studies, wiiw)

  • Mahdi Ghodsi

    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

In this paper, unit values and unit value ratios in bilateral manufacturing trade across all countries in the world are analysed over the period 1998-2014. Descriptive evidence of price differences across country groups and groups of manufacturing industries according to technology intensity is presented. Furthermore, the determining factors of unit values taking both demand and supply side factors into account are analysed. Estimation results confirm the arguments put forward in the existing literature that (i) advanced countries demand and supply high-quality products; (ii) capital- and skill-abundant countries export higher quality products, and (iii) larger economies tend to have lower unit values in their exports due to scale effects. However, the results by different industries and country groups point at a more diverse pattern.

Suggested Citation

  • Alexandra Bykova & Mahdi Ghodsi & Robert Stehrer, 2018. "The Evolution of Trade Unit Values: A Measurement on Quality," wiiw Research Reports 431, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:rpaper:rr:431
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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