Export Quality in Developing Countries

35 Pages Posted: 8 Jun 2013

See all articles by Christian Henn

Christian Henn

International Monetary Fund

Chris Papageorgiou

International Monetary Fund (IMF) - Research Department

Nicola Spatafora

International Monetary Fund (IMF)

Date Written: May 2013

Abstract

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.

Keywords: Exports, Developing countries, Manufacturing sector, Agricultural commodities, Agricultural exports, Cross country analysis, Product Quality, Upgrading, Developing Countries., export quality, exporter, exporters, commodity exporters, export prices, export sectors, apparel exports, export diversification, export basket, commodity exports, export markets, export value, regional trade agreements, export baskets, export flows, prices of exports, export market, trade flows, fuel exporters, world exports, developing countries ? exports, material exports, countries ? exports, export revenues, total exports, export market share

JEL Classification: F14, L15

Suggested Citation

Henn, Christian and Papageorgiou, Chris and Spatafora, Nikola, Export Quality in Developing Countries (May 2013). IMF Working Paper No. 13/108. Available at SSRN: https://ssrn.com/abstract=2276343

Christian Henn (Contact Author)

International Monetary Fund ( email )

700 19th St NW
Washington, DC 20431
United States

Chris Papageorgiou

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Nikola Spatafora

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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