Download or read book Export Quality and Income Distribution written by Rajat Acharyya and published by Cambridge University Press. This book was released on 2023-01-31 with total page 153 pages. Available in PDF, EPUB and Kindle. Book excerpt: Given the increasing sensitivity of buyers in the richer countries towards quality of goods they consume, low-quality exports largely constrain export-growth of the developing countries. This Element documents the attempts to estimate cross-country quality variations and reviews the demand side and supply side explanations for the low-quality phenomenon. It examines how trade policies can incentivize export-quality upgrading, and discusses the underlying channels through which a reverse causality from export-quality upon within-country income or wage inequality may develop.

Download or read book Convergence and Innovation in Export Quality and the World Income Distribution written by Jan Trenczek and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Explaining Import Variety and Quality written by Yo Chul Choi and published by . This book was released on 2006 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine a generalized version of Flam and Helpman's (1987) model of vertical differentiation that maps cross-country differences in income distributions to variations in import variety and price distributions. The theoretical predictions are examined and confirmed using micro data on income from the Luxemburg Income Study for 30 countries over 20 years. The pairs of importers whose income distributions look more similar have more export partners in common and more similar import price distributions. Similarly, the importers whose income distributions look more like the world buy from more exporters and have import price distributions that look more like the world.

Download or read book Average Income Income Inequality and Export Unit Values written by Hélène Latzer and published by . This book was released on 2021 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyses the relationship between a country's income distribution and its exports' unit values. Using bilateral export flows, we not only confirm the positive association between a country's average income and its export unit values, but further identify a heterogeneous relationship with income inequality: we find a greater income spread to be associated with higher exports unit values in the case of poor countries only. These results are robust to the inclusion of controls for other determinants of export unit values, as well as to the use of alternative measures of income inequality and of the quality index. We finally discuss various theoretical rationalisations for this heterogeneous relationship between income inequality and the quality content of exports along the average income dimension, and show suggestive evidence that demand-side mechanisms can account for it at least partly.

Download or read book Income Distribution Product Quality and International Trade written by Pablo D. Fajgelbaum and published by . This book was released on 2017 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors develop a framework for studying trade in horizontally and vertically differentiated products. In their model, consumers with heterogeneous incomes and tastes purchase a homogeneous good and make a discrete choice of quality and variety of a differentiated product. The distribution of preferences generates a nested-logit demand structure such that the fraction of consumers who buy a higher-quality product rises with income. The model features a home-market effect that helps to explain why richer countries export higher-quality goods. It provides a tractable tool for studying the welfare consequences of trade and trade policy for different income groups in an economy.

Download or read book Income Distribution Product Quality and International Trade written by Pablo Fajgelbaumy and published by . This book was released on 2011 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: The authors develop a framework for studying trade in horizontally and vertically differentiated products. In their model, consumers with heterogeneous incomes and tastes purchase a homogeneous good and make a discrete choice of quality and variety of a differentiated product. The distribution of preferences generates a nested-logit demand structure such that the fraction of consumers who buy a higher-quality product rises with income. The model features a home-market effect that helps to explain why richer countries export higher-quality goods. It provides a tractable tool for studying the welfare consequences of trade and trade policy for different income groups in an economy.

Download or read book Explaining Import Variety and Quality written by Yo Chul Choi and published by . This book was released on 2010 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine a generalized version of Flam and Helpmanacirc;euro;TMs (1987) model of vertical differentiation that maps cross-country differences in income distributions to variations in import variety and price distributions. The theoretical predictions are examined and confirmed using micro data on income from the Luxemburg Income Study for 30 countries over 20 years. The pairs of importers whose income distributions look more similar have more export partners in common and more similar import price distributions. Similarly, the importers whose income distributions look more like the world buy from more exporters and have import price distributions that look more like the world.

Download or read book Export Quality in Developing Countries written by Christian Henn and published by International Monetary Fund. This book was released on 2013-05-15 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops new, far more extensive estimates of export quality, covering 178 countries and hundreds of products over 1962–2010. Quality upgrading is particularly rapid during the early stages of development, with quality convergence largely completed as a country reaches upper middle-income status. There is significant cross-country heterogeneity in quality growth rates. Within any given product line, quality converges both conditionally and unconditionally to the world frontier; increases in institutional quality and human capital are associated with faster quality upgrading. In turn, faster growth in quality is associated with more rapid output growth. The evidence suggests that quality upgrading is best encouraged through a broadly conducive domestic environment, rather than sector-specific policies. Diversification is important to create new upgrading opportunities.

Download or read book Product Standards Exports and Employment written by Rajat Acharyya and published by Springer Science & Business Media. This book was released on 2006-03-30 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: Through the process of globalization, the trade dependence and int- dependence of the developing countries have increased phenomenally than ever before. The characteristic of this late twentieth-century globalization process has been the new technological revolution that has led to a high rate of world exports of electronics and other high-technology products. This has marginalized most of the developing countries exporting largely the low quality and low value-addition manufacturing and primary products, barring a few exceptions like China, India and Mexico. The fruits of globalization have, therefore, been unevenly distributed so far across the developed and the developing countries. Moreover, whatever little growth in exports of medium technology products has been achieved by a few of them, is largely driven by outsourcing of low value-addition and low- stage of activities by the foreign multinationals. Outsourcing of software services, rather than development of software packages, in India and assembly line for automobiles in Mexico are the two glaring examples. These activities may have boosted the total exports of these countries, but they have failed to generate any feedback effect on the rest of the economy in terms of skill formation, increase in overall productivity level and product diversification.

Download or read book Trade and Income Distribution written by William R. Cline and published by Peterson Institute. This book was released on 1997 with total page 330 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Cline also finds that trade liberalization has tended to raise skilled wages rather than reduce unskilled wages. Moreover, its impact has probably been no larger than falling transport and communication costs. Most importantly for policy, model simulations for the future show more limited trade impact than in the past and little unequalizing impact of further trade liberalization. Book jacket."--Jacket.

Download or read book Income Inequality and Export Prices Across Countries written by Lisandra Flach and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides theory and evidence on the links between income inequality within a destination country and the patterns of trade and export prices. The theoretical framework relates income inequality to product quality and prices using a simple demand composition effect. The model predicts that a more unequal income distribution in a destination country leads to higher average prices, though the effect is nonlinear and disappears for rich enough countries. The predictions are tested using detailed firm-level data. Controlling for income per capita, prices are systematically higher in more unequal destinations, and the strength of this effect depends on income per capita. Results are particularly important for middle-income countries and hold only for differentiated goods, and in particular for products with a high degree of vertical differentiation. Inégalité des revenus et prix des exportations entre pays. Ce texte étudie les liens entre l'inégalité des revenus dans un pays de destination et le pattern de commerce et de prix à l'exportation à la fois au plan théorique et empirique. Le cadre théorique relie l'inégalité des revenus à la qualité et aux prix des produits en utilisant un simple effet de composition de la demande. Le modèle prédit que plus la distribution des revenus est inégale dans le pays de destination, plus les prix moyens seront élevés, même si cet effet est non-linéaire et disparaît pour les pays suffisamment riches. Les prédictions sont validées en utilisant des données détaillées au niveau de la firme. Contrôlant pour le revenu per capita, on montre que les prix sont systématiquement plus élevés dans les destinations où la distribution des revenus est plus inégale, et que l'intensité de cet effet dépend du niveau de revenu per capita. Ces résultats sont particulièrement importants pour les pays à niveau de revenu moyen et ne tiennent que pour les produits différenciés, et en particulier pour les produits à forte différenciation verticale.

Download or read book Income Distribution Market Size and Industrialization written by Kevin M. Murphy and published by . This book was released on 1988 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: When world trade is not free and costless, a less developed country can profitably industrialize only if its domestic markets are large enough. In such a country, for increasing returns technologies to break even, sales must be high enough to cover the set-up costs, This paper studies some determinants of the size of the domestic market, and focuses on two conditions conducive to industrialization. First, agriculture or exports must provide the source of autonomous demand for manufactures. Such expansion of autonomous demand usually results from increases in farm productivity or from opening of new export markets. Second, income generated in agriculture or exports must be broadly enough distributed that it materializes as demand for mass-produced domestic goods, and not just for luxuries. We resort to these two determinants of the size of domestic markets to interpret several historical development episodes.

Download or read book A Basic Guide to Exporting written by Jason Katzman and published by Skyhorse Publishing Inc.. This book was released on 2011-03-23 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: Here is practical advice for anyone who wants to build their business by selling overseas. The International Trade Administration covers key topics such as marketing, legal issues, customs, and more. With real-life examples and a full index, A Basic Guide to Exporting provides expert advice and practical solutions to meet all of your exporting needs.

Download or read book Causes and Consequences of Income Inequality written by Ms.Era Dabla-Norris and published by International Monetary Fund. This book was released on 2015-06-15 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the extent of income inequality from a global perspective, its drivers, and what to do about it. The drivers of inequality vary widely amongst countries, with some common drivers being the skill premium associated with technical change and globalization, weakening protection for labor, and lack of financial inclusion in developing countries. We find that increasing the income share of the poor and the middle class actually increases growth while a rising income share of the top 20 percent results in lower growth—that is, when the rich get richer, benefits do not trickle down. This suggests that policies need to be country specific but should focus on raising the income share of the poor, and ensuring there is no hollowing out of the middle class. To tackle inequality, financial inclusion is imperative in emerging and developing countries while in advanced economies, policies should focus on raising human capital and skills and making tax systems more progressive.

Download or read book Income Distribution Multi quality Firms and Patterns of Trade written by Hélène Latzer and published by . This book was released on 2014 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Firms and International Trade written by Alvaro Felipe Garcia Marin and published by . This book was released on 2014 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation empirically examines three different questions related to the behavior and performance of firms participating of international trade. In the first essay, I ask whether exporting allows firms to charge higher markups. To study this question, I use a unique dataset of Chilean manufacturing firms that contains product-level data on the price and average cost for all goods produced and exported. This allows me to compute direct markup measures, and to identify whether markups variation is accounted by different pricing policies or changes in the production cost. Although within firms the export markup premium is moderate -about 2%-, the study of the trajectories of markups before and after export entry reveals the presence of ongoing gains after export entry. While at the moment of export entry the markup of exported products is not different than the markup of domestic products, three periods after export entry the markup wedge increases to about 7-9%. A decomposition of the markup premium reveals that, within firms, the higher markups on exported products is accounted by both higher prices and marginal cost. In contrast, after export entry, prices and average cost tend to decrease. In the second essay -based on joint work with Nico Voigtlaender-, we revisit the old question of whether firms become more productive after export entry. While there is strong evidence for productivity-driven selection into exporting, previous research has mostly failed to identify export-related efficiency gains within plants. This non-result is typically derived from revenue productivity, which reflects price variation. Using a census panel of Chilean manufacturing plants, we first confirm the non-result for revenue productivity. We then compute plant-product level marginal cost as an efficiency measure that is not affected by prices. We find within-plant efficiency gains of 15-25%, the same order of magnitude as selection effects across plants. Evidence suggests that technology upgrading in combination with export entry is an important driver behind these gains. The final essay studies firms' quality patterns across destinations, when they produce products in different quality segments. I develop a quality model with non-homothetic quality demand and heterogeneity in consumers' income. The model features quality sorting of consumers according to their income level. This implies that firm's quality allocation depends not only on the average income of the country, but on the entire income distribution of the country. The main prediction of the model is related to the role of income inequality on within-firm quality patters. I find that in countries with a smaller middle classes, firms' tend to skew their exports towards products of higher quality. This effect tends to be weaker in countries with higher income. To illustrate the main predictions of the model, I use a unique dataset from the Chilean wine industry. This dataset allows me to construct measures of product quality, that are not affected by aggregation or markup issues. In line with the model's predictions, I find that firms tend export proportionally more high quality products to more unequal countries. However, I find this effect to be quantitatively important only in low and middle-income countries.

Download or read book Rising Income Inequality written by Chris Papageorgiou and published by International Monetary Fund. This book was released on 2008-07 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relationship between trade and financial globalization and the rise in inequality in most countries in recent decades. We find technological progress as having a greater impact than globalization on inequality. The limited overall impact of globalization reflects two offsetting tendencies: whereas trade globalization is associated with a reduction in inequality, financial globalization-and foreign direct investment in particular-is associated with an increase. A key finding is that both globalization and technological changes increase the returns on human capital, underscoring the importance of education and training in both developed and developing countries in addressing rising inequality.