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GTAP Resource #2654

"Quality Competition, Pricing-To-Market and Non-Tariff Measures "
by Ferrantino, Michael, Robert Feinberg and Lauren Deason


Abstract
This paper seeks to present a unified framework for several factors that have been independently studied as determinants of unit values in international trade: product differentiation by quality (which suggests that unit values should be positively correlated with exporters' per capita income), pricing-to-market (which suggests they should be positively correlated with importers' per capita income), and non-tariff measures (which suggests that remaining residuals may contain evidence of trade barriers). On a large sample of bilateral unit values for 2005, we find that about half of all HS-6 products demonstrate both significant quality-ladder effects and pricing-to-market effects, with quality-ladder effects predominating in importance. We also rank importers by the remaining unexplained variation in import prices, and examine whether these variations are plausibly related to non-tariff measures.


Resource Details (Export Citation) GTAP Keywords
Category: 2008 Conference Paper
Status: Published
By/In: Southern Economic Journal
Date: 2011
Version:
Created: Ferrantino, M. (4/11/2008)
Updated: Ferrantino, M. (9/8/2011)
Visits: 2,100
- Domestic policy analysis
- Technological change


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  File format GTAP Resource 2654  (180.8 KB)   Replicated: 0 time(s)


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