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Trade differentiation and the characteristics of new imported and exported products - international panel data analysis

Aleksandra Parteka ()

Collegium of Economic Analysis Annals, 2013, issue 30, 203-217

Abstract: This paper documents changes in both quantity and quality of goods added to countries’ trade baskets as countries develop. Drawing on product level (HS0, 6 digit) data on both imports and exports for a vast panel of international economies (163 countries, 1988–2010) we calculate the number of active and new product lines, as well as compute measures of their human capital and natural resource content. We find that strong activity at the extensive margin typical for low stages of development is associated with changes in the quality content of newly traded goods. Economic growth goes in line with the rise in the number of traded products and introduction of new goods with increasing human capital content and decreasing natural resource intensity.

Keywords: import; export; trade differentiation; diversification; economic growth (search for similar items in EconPapers)
Date: 2013
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Handle: RePEc:sgh:annals:i:30:y:2013:p:203-217