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dc.contributor.authorSchetter, Ulrich
dc.date.accessioned2021-02-09T14:06:16Z
dc.date.issued2020-04
dc.identifier.citationSchetter, Ulrich. “Quality Differentiation, Comparative Advantage, and International Specialization Across Products.” CID Research Fellow and Graduate Student Working Paper Series 2020.126, Harvard University, Cambridge, MA, April 2020.en_US
dc.identifier.urihttps://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37366849*
dc.description.abstractWe introduce quality differentiation into a Ricardian model of international trade. We show that (1) quality differentiation allows industrialized countries to be active across the full board of products, complex and simple ones, while developing countries systematically specialize in simple products, in line with novel stylized facts. (2) Quality differentiation may thus help to explain why richer countries tend to be more diversified and why, increasingly over time, rich and poor countries tend to export the same products. (3) Quality differentiation implies that the gains from inter-product trade mostly accrue to developing countries. (4) Guided by our theory, we use a censored regression model to estimate the link between a country’s GDP per capita and its export quality. We find a much stronger relationship than when using OLS, in line with our theory.en_US
dc.language.isoen_USen_US
dc.publisherCenter for International Development at Harvard Universityen_US
dc.relation.isversionofhttps://www.hks.harvard.edu/centers/cid/publications/fellow-graduate-student-working-papersen_US
dash.licenseLAA
dc.titleQuality Differentiation, Comparative Advantage, and International Specialization Across Productsen_US
dc.typeResearch Paper or Reporten_US
dc.description.versionAccepted Manuscripten_US
dc.relation.journalCID Research Fellow and Graduate Student Working Paper Seriesen_US
dc.date.available2021-02-09T14:06:16Z
dash.contributor.affiliatedSchetter, Ulrich


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