Publication: Specialization across goods and export quality
Authors
Alcalá, Francisco
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info:eu-repo/semantics/workingPaper
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Abstract
This paper explores the link between international specialization across goods and within goods along the quality dimension. The analysis is
performed in a multi-country model with an integer number of efficiency
heterogeneous firms producing each good and under reasonably general
assumptions on the shape of firm efficiency distributions and market
structure. In equilibrium, each country exports a range of qualities for
each good that overlaps with the ranges of other countries following
patterns that relate to differences in wages, trade frictions and
absolute advantage. If firm efficiency is quality biased (i.e., the
relative productivity of more efficient firms is higher when producing
higher quality) then, conditional on wages, the average quality of the
exports within an industry increases with the country’s international
specialization in that industry.
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