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GTAP Resource #730

"The Quality and Variety of a Nation's Exports"
by Hummels, David and Peter J. Klenow

Using 1990 data on U.S. imports from 119 countries in 14,572 product categories, we find that
richer countries and countries with more workers export to the U.S. in many more categories.
Within categories, richer countries export modestly fewer units at considerably higher unit
prices, suggesting they are exporting higher quality products. If exports to the U.S. are
representative of exporter production, then the estimates imply that one-half of country
differences in income per worker arise from differences in the quality of goods produced. We
find further that countries with more workers export greater quantities per category at no lower
unit prices. This last finding coincides with Krugman-style models of differentiated products
subject to fixed costs of production, and appears inconsistent with Armington-style models
with a fixed number of country-specific varieties.

Resource Details (Export Citation) GTAP Keywords
Category: 2001 Conference Paper
Status: Published
By/In: Presented at the 4th Annual Conference on Global Economic Analysis, Purdue University, USA
Date: 2001
Created: (7/8/2001)
Updated: Bacou, M. (7/8/2001)
Visits: 2,067
No keywords have been specified.

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