Import Quality in Former Centrally Planned EU Countries

Vincenzo Merella and Josef Tauser

Carlo Alberto Notebooks from Collegio Carlo Alberto

Abstract: In the last two decades, initiatives promoted by the media and national public o¢ cials of several European former centrally planned (FCP) countries have induced the EU to produce inquiries, re- ports, and directives regarding products’price and quality di¤erentials between FCP and non-FCP markets. We investigate this issue empirically by examining custom data. We …nd that such di¤eren- tials exist and can be rationalized by standard international trade theories in the presence of quality di¤erentiation. Analogous evidence obtains by inspecting intra-EU trade and when the analysis is extended to exporters worldwide, showing that the matter is global and does not pertain solely to EU producers. Therefore, our …ndings suggest that the FCP countries’concerns may be unwarranted.

Keywords: EU; Former Centrally Planned Countries; Import Composition; International Trade; Market Segmentation; Pricing-to-market. (search for similar items in EconPapers)
Pages: 26 pages
Date: 2022
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:cca:wpaper:684

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