Do Rich and Poor Countries Specialize in a Different Mix of Goods? Evidence from Product-Level US Trade Data / Peter K. Schott.

By:

Schott, Peter K

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w8492.Publication details: Cambridge, Mass. National Bureau of Economic Research 2001.Description: 1 online resource: illustrations (black and white)Subject(s):

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: Unit values of US imports at the product level reveal a substantial degree of vertical product differentiation among countries exporting to the US. This specialization is not apparent by looking solely at trade flows. Two trends stand out. First, the portion of US import products originating in either rich or poor countries exclusively has fallen dramatically as US trade barriers have fallen, from 41% in 1972 to 17% in 1994. Indeed, by 1994, nearly three quarters the products imported into the US were sourced simultaneously from rich and poor countries. Second, within-product unit value dispersion is positively and significantly correlated with source country income: men's shirts imported from Japan in 1994, for example, are about thirty times as expensive as shirts originating in the Philippines. These unit value premia, and their increase over time, are consistent with the factor proportions framework but convey a stark warning: industry trade flow data alone are too coarse to meet the assumptions underlying most tests of trade theory.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w8492 (Browse shelf(Opens below))	Not For Loan

Total holds: 0

Collection: Colección NBER Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	nber w8489 An Empirical Analysis of Imprisoning Drug Offenders /	nber w8490 Insurance and the Utilization of Medical Services Among the Self-Employed /	nber w8491 Fixed versus Flexible: Lessons from EMS Order Flow /	nber w8492 Do Rich and Poor Countries Specialize in a Different Mix of Goods? Evidence from Product-Level US Trade Data /	nber w8493 Deposit Insurance Around the Globe: Where Does it Work? /	nber w8494 Short Sale Constraints and Stock Returns /	nber w8495 Does Money Protect Health Status? Evidence from South African Pensions /	Next

September 2001.

Unit values of US imports at the product level reveal a substantial degree of vertical product differentiation among countries exporting to the US. This specialization is not apparent by looking solely at trade flows. Two trends stand out. First, the portion of US import products originating in either rich or poor countries exclusively has fallen dramatically as US trade barriers have fallen, from 41% in 1972 to 17% in 1994. Indeed, by 1994, nearly three quarters the products imported into the US were sourced simultaneously from rich and poor countries. Second, within-product unit value dispersion is positively and significantly correlated with source country income: men's shirts imported from Japan in 1994, for example, are about thirty times as expensive as shirts originating in the Philippines. These unit value premia, and their increase over time, are consistent with the factor proportions framework but convey a stark warning: industry trade flow data alone are too coarse to meet the assumptions underlying most tests of trade theory.