Export Quality in Developing Countries

Author/Editor: Christian Henn ; Chris Papageorgiou ; Nicola Spatafora
Publication Date: May 15, 2013
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper develops new, far more extensive estimates of export quality, covering 178 countries and hundreds of products over 1962–2010. Quality upgrading is particularly rapid during the early stages of development, with quality convergence largely completed as a country reaches upper middle-income status. There is significant cross-country heterogeneity in quality growth rates. Within any given product line, quality converges both conditionally and unconditionally to the world frontier; increases in institutional quality and human capital are associated with faster quality upgrading. In turn, faster growth in quality is associated with more rapid output growth. The evidence suggests that quality upgrading is best encouraged through a broadly conducive domestic environment, rather than sector-specific policies. Diversification is important to create new upgrading opportunities.
Series: Working Paper No. 13/108
Subject(s): Exports | Developing countries | Manufacturing sector | Agricultural commodities | Agricultural exports | Cross country analysis

Publication Date: May 15, 2013
ISBN/ISSN: 9781484351635/1018-5941 Format: Paper
Stock No: WPIEA2013108 Pages: 34
US$18.00 (Academic Rate:
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