Import Demand with Product Differentiation: Disaggregated Estimation of Italian Sectoral Elasticities

Stefano Chiarlone

No 113, KITeS Working Papers from KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy

Abstract: This paper estimates sectoral demand functions for Italian imports from European Union countries, Japan, Canada and United States. Evidence of two-way flows and product differentiation is an accepted regularity of international trade. We have tried to include considerations of differentiation in the analysis. Starting from very disaggregated bilateral trade data (5 digit Sitc Rev. 3) we have classified each flow as homogeneous, quality differentiated or non-quality differentiated. Then we have used this classification in the estimate of sectoral import functions. That should increase precision, because avoids pooling homogeneous and differentiated goods in estimation. Our results suggest a very dynamic reaction of Italian imports in many sectors, pointing to possible competitive problems for firms and trade balance constraint for the country.

Keywords: Sectoral import demand; Quality and horizontal differentiation; Italian trade; Sectoral price and income elasticity (search for similar items in EconPapers)
JEL-codes: C23 F14 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2000-07, Revised 2000-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
ftp://ftp.unibocconi.it/pub/RePEc/cri/papers/wp113.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Failed to connect to FTP server ftp.unibocconi.it: No such host is known.

Related works:
Working Paper: Import demand with product differentiation: disaggregated estimation of italian sectoral elasticities (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cri:cespri:wp113

Ordering information: This working paper can be ordered from
E G E A - via R. Sarfatti, 25 - 20136 Milano -Italy

Access Statistics for this paper

More papers in KITeS Working Papers from KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy via Sarfatti, 25 - 20136 Milano - Italy.
Bibliographic data for series maintained by Valerio Sterzi ( this e-mail address is bad, please contact ).