Quality Competition Versus Price Competition Goods: An Empirical Classification

Richard Baldwin and Tadashi Ito

No 6952, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Based on the recent trade models of the Heterogeneous Firms Trade (HFT) model and the Quality Heterogeneous Firms Trade (QHFT) model, we classify export goods (at the HS 6-digit level of disaggregation) by quality and price competition. We find a high proportions of quality-competition goods for the major EU countries and lower proportions for Canada, Australia and China. However, the overlap of these quality-competition goods is not large, which suggests that characteristics of export goods are substantially different across countries at the same HS 6-digit code.

Keywords: heterogeneous firms trade model; Quality vs Price competition (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-int
Date: 2008-09
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