Quality Upgrading and the Stages of Diversification

Chris Papageorgiou (), Fidel Perez-Sebastian and Nikola Spatafora
Authors registered in the RePEc Author Service: Fidel Perez Sebastian

MPRA Paper from University Library of Munich, Germany

Abstract: This paper explores the contribution of product quality upgrading in the process of export diversification. To do this, the paper builds a multisector model following Eaton and Kortum (2002) in which product quality is incorporated as a key feature. The model is then calibrated to generate predictions about the degree of export diversification in a number of East Asian countries. It is shown that quality upgrading is a key factor to understand the changes in the degree of export diversification in the majority of countries in our sample.

Keywords: export diversification; product quality; international trade; structural transformation. (search for similar items in EconPapers)
JEL-codes: F10 O14 O40 (search for similar items in EconPapers)
Date: 2016-12-16
New Economics Papers: this item is included in nep-dcm, nep-int and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:79400

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