Reference : Quality and Trade with Many Countries and Industries
Scientific congresses, symposiums and conference proceedings : Unpublished conference
Business & economic sciences : International economics
Quality and Trade with Many Countries and Industries
Picard, Pierre M mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM) >]
Tampieri, Alessandro [University of Florence]
ASSET conference
from 20 to 22 October 2021
University of Marselle
[en] product quality ; vertical differentation
[en] This paper investigates a trade model with many countries, many goods produced
in multiple quality versions and non-homothetic preferences. It studies the impact of
productivity, population changes and trade costs on the quality composition of exports.
The analysis embeds within the same model a series of empirical results about high-income
countries specialization and trade in higher quality goods. Product di¤erentiation matters
at explaining the volumes of trade quality. High-quality goods exhibiting a high degree
of di¤erentiation are traded only by high-income countries.

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