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Title: Quality Competition Versus Price Competition Goods: An Empirical Classification

Author(s): Richard Baldwin and Tadashi Ito

Publication Date: September 2008

Keyword(s): heterogeneous firms trade model and Quality vs Price competition

Programme Area(s): International Trade and Regional Economics

Abstract: 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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Bibliographic Reference

Baldwin, R and Ito, T. 2008. 'Quality Competition Versus Price Competition Goods: An Empirical Classification'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6952