Di Comite, Francesco, Thisse, Jacques-François, Vandenbussche, Hylke, (2016), “Demand decomposition in trade: Quality and taste”, Voxeu, 12 April
The trade literature has long focused on firms’ productivity as an explanation for export performance. But what about the demand side? This column looks at firms’ appeal in terms of quality and consumer taste. Using Belgian firm-level data, it suggests that tastes could account for 45% of the variation in export quantities across countries.
Relevant Posts
- Frensch,Richard, Hanousek, Jan, Kočenda Evžen, (2016), “Trade in parts and components across Europe”, Voxeu, 9 February
- Altomonte, Carlo, Bekes, Gabor, (2016), “Measuring competitiveness in Europe: resource allocation, granularity and trade”, Brugel publications, 28 January