How geography affects quality

Volodymyr Lugovskyy and Alexandre Skiba

Journal of Development Economics, 2015, vol. 115, issue C, 156-180

Abstract: This paper connects the quality of product-level bilateral trade flows with the geographic position of the exporter. Theoretically we show that, in addition to commonly used importer characteristics, quality increases (i) in trade-weighted specific transportation cost to destinations other than the importer and (ii) in trade-weighted preference for quality of destinations other than the importer. These two channels extend the familiar Alchian–Allen and Linder theories to the multilateral setting.

Keywords: Quality; Vertical specialization; Trade and development; Economic geography; Alchian–Allen effect; Linder hypothesis; Distance (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304387815000073
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:115:y:2015:i:c:p:156-180

DOI: 10.1016/j.jdeveco.2015.01.005

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().