Quality and the Great Trade Collapse

Natalie Chen and Luciana Juvenal

No 2016/030, IMF Working Papers from International Monetary Fund

Abstract: We explore whether the global financial crisis has had heterogeneous effects on traded goods differentiated by quality. Combining a dataset of Argentinean firm-level destination-specific wine exports with quality ratings, we show that higher quality exports grew faster before the crisis, but this trend reversed during the recession. Quantitatively, the effect is large: up to nine percentage points difference in trade performance can be explained by the quality composition of exports. This flight from quality was triggered by a fall in aggregate demand, was more acute when households could substitute imports by domestic alternatives, and was stronger for smaller firms' exports.

Keywords: WP; export growth; wine export; export value; financial crisis; Exports; heterogeneity; multi-product firms; quality; trade collapse; unit values; wine; unit value; export volume; quality export; Export performance; Real exports; Imports; Global (search for similar items in EconPapers)
Pages: 59
Date: 2016-02-18
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Quality and the Great Trade Collapse (2018)
Working Paper: Quality and the Great Trade Collapse (2016)
Working Paper: Quality and the Great Trade Collapse (2015)
Working Paper: Quality and the Great Trade Collapse (2015)
Working Paper: Quality and the Great Trade Collapse (2015)
Working Paper: Quality and the Great Trade Collapse (2015)
Working Paper: Quality and the Great Trade Collapse (2015)
Working Paper: Quality and the Great Trade Collapse
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