Average income, income inequality and export unit values

Hélène Latzer and Florian Mayneris

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: This paper analyses the relationship between a country's income distribution and its exports' unit values. Using bilateral export flows, we not only confirm the positive relationship between a country's average income and the quality of its exports, but further identify a heterogeneous impact of income inequality: we find a greater income spread to be deneficial for an exporter's unit values in the case of poor countries only. These results are robust to the inclusion of controls for other determinants of export unit values, as well as to the use of alternative measures of income inequaltity and of the quality index. We finally show that this heterogeneous impact of income inequality along the average income dimension is consistent with models emphasizing the role of the composition of local demand in detemining the comparative advantage of countries in terms of quality

Keywords: Income distribution; Export Unit Values; Product quality; Trade; Home market effect (search for similar items in EconPapers)
JEL-codes: F12 L15 O15 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2018-10
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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ftp://mse.univ-paris1.fr/pub/mse/CES2018/18031.pdf (application/pdf)

Related works:
Journal Article: Average income, income inequality and export unit values (2021)
Working Paper: Average income, income inequality and export unit values (2021)
Working Paper: Average income, income inequality and export unit values (2021)
Working Paper: Average income, income inequality and export unit values (2021)
Working Paper: Average income, income inequality and export unit values (2018)
Working Paper: Average income, income inequality and export unit values (2018)
Working Paper: Average income, income inequality and export unit values (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:18031

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