Discussion paper

DP6952 Quality Competition Versus Price Competition Goods: An Empirical Classification

Based on the recent trade models of the Heterogeneous Firms Trade (HFT) model and the Quality Heterogeneous Firms Trade (QHFT) model, we classify export goods (at the HS 6-digit level of disaggregation) by quality and price competition. We find a high proportions of quality-competition goods for the major EU countries and lower proportions for Canada, Australia and China. However, the overlap of these quality-competition goods is not large, which suggests that characteristics of export goods are substantially different across countries at the same HS 6-digit code.

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Citation

Baldwin, R and T Ito (2008), ‘DP6952 Quality Competition Versus Price Competition Goods: An Empirical Classification‘, CEPR Discussion Paper No. 6952. CEPR Press, Paris & London. https://cepr.org/publications/dp6952