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Title: The Impact of Development on the Export Quality of a Country: An empirical analysis of Chinese Imports
Keywords: product quality, price, proxy, trade, variety, market share
Issue Date: 14-May-2012
Citation: CHANDRANI SARMA (2012-05-14). The Impact of Development on the Export Quality of a Country: An empirical analysis of Chinese Imports. ScholarBank@NUS Repository.
Abstract: This paper mainly tries to reaffirm the popular theory that developed countries are more likely to consume and export higher quality goods than developing countries. It begins by estimating the quality of imported goods in the Chinese market using raw import data, along a model constructed by Amit Khandelwal (2008) based on the logit framework established by Berry (1994). Since product quality is unobserved; there are no uniform records of quality across products, countries and years; a major impediment to research in this area. Hence, unit price has been used by researchers as a proxy; a measure inappropriate if the product has vertical and horizontal attributes. This model estimates product quality based on a more accurate measure, incorporating both price and market share for 178 countries within each 4-digit industry of the manufacturing industries; and then to further use this estimated quality to establish its positive relation with GDP per capita of the exporting country.
Appears in Collections:Master's Theses (Open)

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