Quality and the Great Trade Collapse

Chen, Natalie; Juvenal, Luciana

Quality and the Great Trade Collapse

No 231147, Working Papers from American Association of Wine Economists

Abstract: We explore whether the global …nancial crisis has had heterogeneous e¤ects on traded goods di¤erentiated by quality. Combining a dataset of Argentinean …rm-level destination-speci…c 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 e¤ect is large: up to nine percentage points di¤erence in trade performance can be explained by the quality composition of exports. This ‡ight 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 …rms’ exports.

Keywords: Demand and Price Analysis; Industrial Organization; International Relations/Trade (search for similar items in EconPapers)
Pages: 45
Date: 2015-11
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aawewp:231147

DOI: 10.22004/ag.econ.231147

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