Publication:
Heterogeneous Quality Firms and Trade Costs

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dc.contributor.authorHelble, Matthias
dc.contributor.authorOkubo, Toshihiro
dc.date.accessioned2012-05-29T17:04:25Z
dc.date.available2012-05-29T17:04:25Z
dc.date.issued2008-03
dc.description.abstractThere is increasing empirical evidence that vertical product differentiation is an important determinant of international trade. However, the economic literature so far has solely focused on the case in which quality trade stems from differences between countries. No studies investigate the role of quality trade between similar economies. This paper first develops a simple theoretical trade model that includes vertical product differentiation in a heterogeneous-firm framework. The model yields three main predictions for trade between similar economies. First, exported goods are of higher quality than goods sold on the domestic market. Second, larger economies have on average higher export qualities compared with smaller economies. Third, with increasing trade costs higher quality goods are exchanged. For all three effects, strong empirical support is found using detailed export trade data of the United States and 15 European Union countries.en
dc.identifierhttp://documents.worldbank.org/curated/en/2008/03/9069456/heterogeneous-quality-firms-trade-costs
dc.identifier.doi10.1596/1813-9450-4550
dc.identifier.urihttps://hdl.handle.net/10986/6558
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4550
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVERTISING
dc.subjectAGGREGATE DEMAND
dc.subjectAIM
dc.subjectAIRCRAFT
dc.subjectAVERAGE PRICE
dc.subjectAVERAGE PRICES
dc.subjectBILATERAL TRADE
dc.subjectBRANDS
dc.subjectCAPITAL STOCK
dc.subjectCFS
dc.subjectCLOSED ECONOMY
dc.subjectCOMMERCIAL POLICY
dc.subjectCOMMODITY
dc.subjectCOMMON MARKET
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITION EFFECT
dc.subjectCOMPETITIVENESS
dc.subjectCONSTANT ELASTICITY OF SUBSTITUTION
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONSUMER PRICES
dc.subjectCONSUMERS
dc.subjectCURRENCY
dc.subjectDEMAND FUNCTION
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDOMESTIC MARKET
dc.subjectDOMESTIC PRODUCTION
dc.subjectECONOMIC GEOGRAPHY
dc.subjectECONOMIC SIZE
dc.subjectECONOMIC THEORY
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectEXOGENOUS VARIABLES
dc.subjectEXPENDITURE
dc.subjectEXPORT MARKET
dc.subjectEXPORT MARKETS
dc.subjectEXPORT PERFORMANCE
dc.subjectEXPORT PRICE
dc.subjectEXPORT PRICES
dc.subjectEXPORT TRADE
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectFACTOR ENDOWMENTS
dc.subjectFACTOR PRICE
dc.subjectFACTOR PRICES
dc.subjectFIXED COSTS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN MARKET
dc.subjectFOREIGN PRODUCERS
dc.subjectFOREIGN SALES
dc.subjectFREE TRADE
dc.subjectFREIGHT
dc.subjectFREIGHT COSTS
dc.subjectFREIGHT RATES
dc.subjectFUTURE RESEARCH
dc.subjectFUTURE STUDIES
dc.subjectGDP
dc.subjectGRAVITY EQUATION
dc.subjectGRAVITY MODEL
dc.subjectHARMONIZED SYSTEM
dc.subjectHOME MARKET
dc.subjectHUMAN CAPITAL
dc.subjectIMPACT OF TRADE
dc.subjectIMPORT PENETRATION
dc.subjectINCOME EFFECT
dc.subjectINCOME LEVELS
dc.subjectINCREASING RETURNS
dc.subjectINDUSTRIAL ECONOMICS
dc.subjectINDUSTRY TRADE
dc.subjectINTERNATIONAL MARKETS
dc.subjectINTERNATIONAL TRADE
dc.subjectLABOR MARKET
dc.subjectMANUFACTURING
dc.subjectMARGINAL COSTS
dc.subjectMARKET ACCESS
dc.subjectMARKET COMPETITION
dc.subjectMARKET SHARE
dc.subjectMARKET SIZE
dc.subjectMARKET SIZE EFFECTS
dc.subjectMEASURE OF TRADE
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectNATIONAL INCOME
dc.subjectNET EXPORTER
dc.subjectNOMINAL PRICE
dc.subjectPATTERN OF TRADE
dc.subjectPATTERNS OF TRADE
dc.subjectPER CAPITA INCOME
dc.subjectPERFECT COMPETITION
dc.subjectPOLITICAL ECONOMY
dc.subjectPRICE COMPETITION
dc.subjectPRICE DISCRIMINATION
dc.subjectPRICE MECHANISM
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectPRODUCT QUALITY
dc.subjectPRODUCTIVITY
dc.subjectPROFIT FUNCTIONS
dc.subjectSALES
dc.subjectSHIPMENTS
dc.subjectSHIPPING
dc.subjectSHIPPING COSTS
dc.subjectSOUTH AMERICAN
dc.subjectSPECIALIZATION
dc.subjectSUPPLIERS
dc.subjectTARIFF DATA
dc.subjectTECHNOLOGY TRANSFER
dc.subjectTELECOMMUNICATIONS
dc.subjectTERMS OF TRADE
dc.subjectTOTAL COSTS
dc.subjectTRADE COSTS
dc.subjectTRADE DATA
dc.subjectTRADE FACILITATION
dc.subjectTRADE FLOWS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE MODELS
dc.subjectTRADE MORE
dc.subjectTRADE PARTNERS
dc.subjectTRADE PATTERN
dc.subjectTRADE PATTERNS
dc.subjectTRANSPORT COSTS
dc.subjectTURNOVER
dc.subjectUNEMPLOYMENT
dc.subjectUNIT OF CAPITAL
dc.subjectUNSKILLED LABOR
dc.subjectUTILITY FUNCTION
dc.subjectVALUE OF EXPORTS
dc.subjectVALUE OF TRADE
dc.subjectVARIABLE COSTS
dc.subjectWAGES
dc.titleHeterogeneous Quality Firms and Trade Costsen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleHeterogeneous Quality Firms And Trade Costs
okr.date.doiregistration2025-04-10T10:40:54.556495Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2008/03/9069456/heterogeneous-quality-firms-trade-costs
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTransport and ICT
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid876571468315284030
okr.identifier.doi10.1596/1813-9450-4550
okr.identifier.externaldocumentum000158349_20080311104410
okr.identifier.internaldocumentum9069456
okr.identifier.reportWPS4550
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/03/11/000158349_20080311104410/Rendered/PDF/wps4550.pdfen
okr.topicTransport and Trade Logistics
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicIndustry::Common Carriers Industry
okr.topicInternational Economics and Trade::Free Trade
okr.topicTransport
okr.topicInternational Economics and Trade
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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