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GTAP Resources: Resource Display

GTAP Resource #5363

"Destination and Source Countries: Do they have a Role on Product Quality?"
by Peluffo, Adriana and Juan Scasso


Abstract
In this work we explore the link between export and import products quality and the level of income of destination and source countries. As proxy to quality we use the firm average unit value prices for both exports and imports.

Some previous works (Bastos et al. 2014, Kugler and Verhoogen, 2012; Verhoogen, 2008) argue that high quality products are exported to high income destination countries, and that the same applies to imports from high income countries: they exhibit higher quality than imports from low and middle income countries. Moreover, it is also argued that firms that exports to high income countries (HI) upgrade their quality by using imports from HI countries.

We test these hypotheses using a rich database for Uruguay over the period 1997-2008. This dataset combines firm level data and detailed customs data of exports and imports by destination or origin country. To analyse causal associations we use instrumental variable techniques, and utilize real exchange rate fluctuation to construct the instruments. Our preliminary results show positive effects on import quality of exporting to and importing from high income countries. On the other side, the results on the quality of exported products are not conclusive.


Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Not published
By/In:
Date: 2017
Version:
Created: Peluffo, A. (4/15/2017)
Updated: Batta, G. (5/7/2017)
Visits: 453
- Other data bases and data issues
- South America


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