Article (Scientific journals)
Vertical differentiation and trade among symmetric countries.
Picard, Pierre M; Tampieri, Alessandro
2020In Econometric Theory
Peer reviewed
 

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Keywords :
trade; vertical differentiation
Abstract :
[en] We study a trade model with vertical product differentiation with many goods that are heterogeneous in cost and quality and produced in two quality versions. We discuss the composition of high- and low-quality goods in the workers’ consumption baskets in countries between comparable countries. We show that a larger country population fosters its specialization in high-quality production while a higher country productivity leads to specialization in high quality production for all countries. Smaller trade costs foster specialization in high quality exports. We then discuss the effect of population heterogeneity on the consumption baskets and country specialization. Most of those results agree with existing empirical findings.
Disciplines :
International economics
Author, co-author :
Picard, Pierre M ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Tampieri, Alessandro
External co-authors :
yes
Language :
English
Title :
Vertical differentiation and trade among symmetric countries.
Publication date :
August 2020
Journal title :
Econometric Theory
ISSN :
1469-4360
Publisher :
Cambridge University Press, New-York, United States - New York
Peer reviewed :
Peer reviewed
Focus Area :
Sustainable Development
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since 24 September 2020

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