{
  "title": "Quality and the Great Trade Collapse",
  "publication": "IMF Working Papers, February 18, 2016",
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  "summary": "We explore whether the global financial crisis has had heterogeneous effects on traded goods differentiated by quality. Combining a dataset of Argentinean firm-level destination-specific wine exports with quality ratings, we show that higher quality exports grew faster before the crisis, but this tr",
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    {
      "heading": "Summary / Main findings",
      "content": "- The study investigates whether the global financial crisis had heterogeneous effects on traded goods differentiated by quality.\n- Combining a dataset of Argentinean firm-level destination-specific wine exports with quality ratings, the authors find:\n  - Higher quality exports grew faster before the crisis, but this trend reversed during the recession.\n  - The reversal constitutes a \"flight from quality\" during the crisis period."
    },
    {
      "heading": "Quantitative impact",
      "content": "- The quality composition of exports can explain up to nine percentage points difference in trade performance."
    },
    {
      "heading": "Mechanisms and contextual factors",
      "content": "- The flight from quality was triggered by a fall in aggregate demand.\n- The effect was more acute when households could substitute imports by domestic alternatives.\n- The flight from quality was stronger for smaller firms' exports."
    },
    {
      "heading": "Data and scope",
      "content": "- Empirical analysis uses Argentinean firm-level destination-specific wine exports combined with quality ratings.\n- Subject areas listed: Export performance, Exports, Financial crises, Imports, International trade, National accounts, Real exports.\n- Keywords listed: export growth; Export performance; export value; export volume; Exports; financial crisis; Global; heterogeneity; Imports; multi-product firms; quality; quality export; Real exports; trade collapse; unit value; unit values; wine; wine export; WP.\n\n---\n\n Content in this bundle\n\n- Wp1630\n  - Wp1630 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp1630 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/quality-and-the-great-trade-collapse-43714"
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    "Authors: Natalie Chen, Luciana Juvenal",
    "Published: February 18, 2016",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781498347587.001",
    "The study investigates whether the global financial crisis had heterogeneous effects on traded goods differentiated by quality.",
    "Combining a dataset of Argentinean firm-level destination-specific wine exports with quality ratings, the authors find:",
    "The quality composition of exports can explain up to nine percentage points difference in trade performance.",
    "The flight from quality was triggered by a fall in aggregate demand.",
    "The effect was more acute when households could substitute imports by domestic alternatives.",
    "The flight from quality was stronger for smaller firms' exports.",
    "Empirical analysis uses Argentinean firm-level destination-specific wine exports combined with quality ratings.",
    "Subject areas listed: Export performance, Exports, Financial crises, Imports, International trade, National accounts, Real exports.",
    "Keywords listed: export growth; Export performance; export value; export volume; Exports; financial crisis; Global; heterogeneity; Imports; multi-product firms; quality; quality export; Real exports; trade collapse; unit value; unit values; wine; wine export; WP.",
    "**Wp1630**"
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