RESEARCH AND ANALYSIS: WORKING PAPERS

Export Quality in Advanced and Developing Economies: Evidence from a New Dataset

This paper develops new estimates of export quality, far more extensive than previous efforts, covering 178 countries and hundreds of products during the period 1962—2010.

IIt finds that quality upgrading is particularly rapid during the early stages of development, with the process largely completed as a country reaches upper middle-income status. There is significant crosscountry heterogeneity in the growth rate of quality. Within any given product line, quality converges over time to the world frontier. Institutional quality, liberal trade policies, FDI inflows, and human capital all promote quality upgrading, although their impact varies across sectors. The results suggest that reducing barriers to entry into new sectors can allow economies to benefit from rapid quality convergence over time.

 

No: ERSD-2015-02

Authors: Christian Henn — WTO,Chris Papageorgiou — IMF, Nikolas Spatafora —World Bank

Manuscript date: February 2015

Key Words:

volumes; Export prices; Quality ladders; Upgrading; Sector development

JEL classification numbers:

F14, L15, O11, O14.

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Disclaimer 

This is a working paper, and hence it represents research in progress. The opinions expressed in this paper are those of its authors. They are not intended to represent the positions or opinions of the WTO or its members and are without prejudice to members’ rights and obligations under the WTO. Any errors are attributable to the authors.

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