Exports' quality-adjusted productivity and economic growth

Asier Minondo ()

The Journal of International Trade & Economic Development, 2010, vol. 19, issue 2, 257-287

Abstract: According to recent studies, countries specialised in products associated with higher productivity levels are likely to grow faster than countries specialised in other goods. A limitation of these studies is that they do not control for quality differences within a product category when measuring goods' productivity level. In this paper we show that if products are distinguished by quality level there is no longer a robust relationship between specialising in products associated with higher productivity levels and faster growth. On the contrary, we find it is the specialisation in products that allow a larger room for quality improvement that leads to higher economic growth.

Keywords: productivity; exports; growth (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1080/09638190802573071

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