Quality competition, Pricing-To-Market and Non-Tariff measures: A Unified Framework For the Analysis of Bilateral Unit Values

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Quality competition, Pricing-To-Market and Non-Tariff measures: A Unified Framework For the Analysis of Bilateral Unit Values

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dc.contributor.author Feinberg, Robert M.
dc.contributor.author Ferrantino, Michael
dc.contributor.author Deason, Lauren
dc.date.accessioned 2009-10-23T18:32:07Z
dc.date.available 2009-10-23T18:32:07Z
dc.date.created 2009-03
dc.date.issued 2009-03
dc.identifier.uri http://hdl.handle.net/1961/5763
dc.description Department of Economics, Working Paper Series, no. 2009-03. 37 pages. en
dc.description.abstract This paper presents a unified framework for analyzing several factors that have been independently studied as determinants of unit values in international trade: product differentiation by quality (which suggests that unit values should be positively correlated with exporters' per capita income), pricing-to-market (which suggests they should be positively correlated with importers' per capita income), and non-tariff measures (which suggests that remaining residuals may contain evidence of trade barriers). On a large sample of bilateral unit values for 2005, we find that about 58 percent of all HS-6 products demonstrate both significant quality-ladder effects and pricing-to-market effects, with quality-ladder effects predominating in importance. Distance-related effects appearing directly in prices appear significantly larger than one would expect as a result of shipping margins. We also rank importers by the remaining unexplained variation in import prices, and examine whether these variations are plausibly related to non-tariff measures. en
dc.language.iso en_US en
dc.publisher Department of Economics, American University en
dc.rights Copyright © 2009 by Robert M. Feinberg, Michael Ferrantino and Lauren Deason. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. en
dc.title Quality competition, Pricing-To-Market and Non-Tariff measures: A Unified Framework For the Analysis of Bilateral Unit Values en
dc.type Working Paper en


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