On the measurement of changes in product quality in marginal intra-industry trade
There is a long established thread of the international trade literature concerned with the measurement of intra-industry trade (IIT). Two distinct strands of the literature have developed: First, measures of marginal IIT that are concerned with the adjustment implications of volume-based changes in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Springer
2008
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| Online Access: | http://psasir.upm.edu.my/id/eprint/15920/ http://psasir.upm.edu.my/id/eprint/15920/1/On%20the%20measurement%20of%20changes%20in%20product%20quality%20in%20marginal%20intra.pdf |
| Summary: | There is a long established thread of the international trade literature concerned with the measurement of intra-industry trade (IIT). Two distinct strands of the literature have developed: First, measures of marginal IIT that are concerned with the adjustment implications of volume-based changes in IIT; second, measures of vertical and horizontal IIT that are concerned with quality-based differences in IIT. This paper marries the two literatures to provide a new perspective on the smooth adjustment hypothesis debate and suggests the use of the marginal product quality index, a new measure of changes in quality in matched trade changes that complements dynamic measures of volume-based IIT. |
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