NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Quality competition versus price competition goods: An empirical classification

Richard E. Baldwin, Tadashi Ito

NBER Working Paper No. 14305
Issued in September 2008
NBER Program(s):   ITI

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.

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A data appendix is available at http://www.nber.org/data-appendix/w14305

This paper was revised on December 5, 2011

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Document Object Identifier (DOI): 10.3386/w14305

Published: E. Baldwin, Richard & Ito, Tadashi, 2011. "Quality Competition Versus Price Competition Goods: An Empirical Classification," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 26, pages 110-135. citation courtesy of

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