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Quality and the Great Trade Collapse

Natalie Chen () and Luciana Juvenal ()

No 10931, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We explore whether the global financial crisis has had heterogeneous effects on traded goods differentiated by quality. Combining a dataset of Argentinean firm-level destination-specific 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 effect is large: up to nine percentage points difference in trade performance can be explained by the quality composition of exports. This flight 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 firms' exports.

Keywords: Exports; Heterogeneity; Multi-product firms; Quality; Trade collapse; Unit values; Wine (search for similar items in EconPapers)
JEL-codes: F10 F14 F41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2015-11
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Related works:
Working Paper: Quality and the Great Trade Collapse (2016) Downloads
Working Paper: Quality and the Great Trade Collapse (2016) Downloads
Working Paper: Quality and the Great Trade Collapse (2015) Downloads
Working Paper: Quality and the Great Trade Collapse (2015) Downloads
Working Paper: Quality and the Great Trade Collapse (2015) Downloads
Working Paper: Quality and the Great Trade Collapse (2015) Downloads
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