Fink, CarstenSmarzynska Javorcik, BeataSpatareanu, Mariana2014-04-252014-04-252003-10https://hdl.handle.net/10986/18040Economists have long recognized that richer countries trade more among themselves than with poorer economies due to a closer match of exporter supply structures and importer preferences. In the literature, the closeness of supply and demand has traditionally been determined by the quality of products-as expressed in the so-called Linder hypothesis. This paper examines an extension of the Linder hypothesis by also considering the extent of horizontal product differentiation as another determinant of the closeness of supply and demand. The empirical analysis employs information on international trademark registrations to test whether richer countries import more from countries whose exports are of higher quality and exhibit a greater degree of product differentiation. The results lend support to the hypothesis in most consumer goods sectors but not in intermediate goods sectors.en-USCC BY 3.0 IGOADVERTISINGAPPARELBILATERAL TRADEBRAND NAMESBRANDSCOALCOMPARATIVE ADVANTAGECOMPETITIVE MARKETSCOMPETITIVENESSCONSUMER PREFERENCESCONSUMERSCONSUMPTION LEVELSCOUNTRY MARKETSDEVELOPMENT ECONOMICSDOMESTIC PRODUCTSECONOMIC GEOGRAPHYECONOMIC PERFORMANCEECONOMICS RESEARCHECONOMISTSELASTICITIESELASTICITYELASTICITY OF SUBSTITUTIONEMERGING MARKETSEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL RESEARCHEMPIRICAL STUDIESENDOGENOUS VARIABLESEQUILIBRIUMEXCLUSIVE RIGHTSEXPORT MARKETSEXPORTERSEXPORTSFIXED COSTSFOREIGN MARKETFOREIGN MARKETSFOREIGN TRADEGDPGDP PER CAPITAGRAVITY EQUATIONGRAVITY MODELHUMAN CAPITALIMPERFECT COMPETITIONIMPORT MARKETSIMPORTSINCOMEINCOME DISTRIBUTIONINCREASING RETURNSINCREASING RETURNS TO SCALEINDUSTRY TRADEINFORMATION ASYMMETRIESINTERMEDIATE GOODSINTERNATIONAL TRADELABOR FORCEMARKET ACCESSMARKET ENTRYMARKET FORCESMARKET MECHANISMMARKET SHARESMARKET STRUCTUREMARKETINGMIDDLE INCOME COUNTRIESMONOPOLISTIC COMPETITIONPER CAPITA INCOMEPERFECT COMPETITIONPOLITICAL ECONOMYPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTSPRESENT VALUEPRICE COMPETITIONPRICE CONTROLPRODUCERSPRODUCT DIFFERENTIATIONPRODUCT QUALITYREGIONALIZATIONREGRESSION ANALYSISSTOCKSTARIFF BARRIERSTRADE BARRIERSTRADE COSTSTRADE FLOWSTRADE MODELSTRADE MORETRADE PATTERNSTRADEMARKSTRANSPORT COSTSUTILITY FUNCTIONVALUE OF EXPORTSVALUE OF TRADE INTERNATIONAL TRADEEXPORT VOLUMEPRODUCT DIFFERENTIATIONPRODUCT SUBSTITUTIONSUPPLY & DEMANDTRADEMARK LICENCESPRODUCT QUALITYCONSUMER GOODSINTERMEDIATE GOODSVALUE OF TRADE10.1596/1813-9450-3150