Quality-biased technical progress and North-South trade

Brian Copeland () and Ashok Kotwal

The Journal of International Trade & Economic Development, 1997, vol. 6, issue 1, 1-14

Abstract: This paper investigates the welfare effects on the South of quality-biased technical progress in North's export sector. North exports a quality-differentiated good. while South exports a homogeneous good. We find that if northern technical progress is quality-neutral, the South must gain, but if technical progress is sufficiently biased towards high quality goods, the South can lose. This is in contrast to the case of homogeneous goods, where the South must always gain from technical progress in North's export sector if both goods are normal.

Keywords: Technological change; international change; quality (search for similar items in EconPapers)
Date: 1997
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DOI: 10.1080/09638199700000001

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