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Exports' quality-adjusted productivity and economic growth

Exports' quality-adjusted productivity and economic growth According to recent studies, countries specialised in products associated with higher productivity levels are likely to grow faster than countries specialised in other goods. A limitation of these studies is that they do not control for quality differences within a product category when measuring goods' productivity level. In this paper we show that if products are distinguished by quality level there is no longer a robust relationship between specialising in products associated with higher productivity levels and faster growth. On the contrary, we find it is the specialisation in products that allow a larger room for quality improvement that leads to higher economic growth. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of International Trade and Economic Development Taylor & Francis

Exports' quality-adjusted productivity and economic growth

31 pages

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References (31)

Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
1469-9559
eISSN
0963-8199
DOI
10.1080/09638190802573071
Publisher site
See Article on Publisher Site

Abstract

According to recent studies, countries specialised in products associated with higher productivity levels are likely to grow faster than countries specialised in other goods. A limitation of these studies is that they do not control for quality differences within a product category when measuring goods' productivity level. In this paper we show that if products are distinguished by quality level there is no longer a robust relationship between specialising in products associated with higher productivity levels and faster growth. On the contrary, we find it is the specialisation in products that allow a larger room for quality improvement that leads to higher economic growth.

Journal

The Journal of International Trade and Economic DevelopmentTaylor & Francis

Published: Jun 1, 2010

Keywords: productivity; exports; growth

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