Quality Competition Versus Price Competition Goods: An Empirical Classification

10 Pages Posted: 10 Sep 2008 Last revised: 4 Aug 2022

See all articles by Richard Baldwin

Richard Baldwin

IMD; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Tadashi Ito

Graduate Institute of International and Development Studies (IHEID)

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Date Written: September 2008

Abstract

Based on the recent trade models of the Heterogeneous Firms Trade (HFT) model and the Quality Heterogeneous Firms Trade (QHFT) model, we classify export goods (at the HS 6-digit level of disaggregation) by quality and price competition. We find a high proportions of quality-competition goods for the major EU countries and lower proportions for Canada, Australia and China. However, the overlap of these quality-competition goods is not large, which suggests that characteristics of export goods are substantially different across countries at the same HS 6-digit code.

Suggested Citation

Baldwin, Richard and Ito, Tadashi, Quality Competition Versus Price Competition Goods: An Empirical Classification (September 2008). NBER Working Paper No. w14305, Available at SSRN: https://ssrn.com/abstract=1265994

Richard Baldwin (Contact Author)

IMD ( email )

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National Bureau of Economic Research (NBER) ( email )

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Centre for Economic Policy Research (CEPR) ( email )

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Tadashi Ito

Graduate Institute of International and Development Studies (IHEID) ( email )

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Geneva, CH-1211
Switzerland

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