Show simple item record Faruq, Hasan 2006-11-27T16:38:19Z 2006-11-27T16:38:19Z 2006-11-27T16:38:19Z
dc.identifier.uri en
dc.identifier.uri en
dc.description.abstract This paper examines why different countries export different qualities of products. Previous studies have attributed quality dispersion to differences in factor endowments while no empirical work has been done examining the effect of technology on quality. Using panel data on U.S. imports from 58 countries, we find that the export of high quality differentiated goods is associated with both higher stock of physical capital endowments and research and development (R&D) activities. We also observe that foreign direct investment (FDI) has a positive effect on quality, which is consistent with the literature on FDI and intra-industry trade. These results cannot be replicated by using the reduced form OLS price regression which is commonly used in the literature. Instead, we use a two-equation system in price and quantity to identify the determinants of quality. en
dc.format.extent 156604 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US en
dc.relation.ispartofseries CAEPR Working Paper en
dc.relation.ispartofseries 2006-019 en
dc.relation.isversionof This paper can also be found on SSRN and RePEc. en
dc.subject CAEPR en
dc.subject Center for Applied Economics and Policy Research en
dc.subject Differentiated Products en
dc.subject Product Quality en
dc.subject Heckscher-Ohlin Model en
dc.subject R&D en
dc.title New Evidence on Product Quality and Trade en
dc.type Working Paper en

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