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The Long and Short (of) Quality Ladders
Open accessAbstract
Prices are typically used as proxies for countries' export quality. I relax this strong assumption by exploiting both price and quantity information to estimate the quality of products exported to the United States. Higher quality is assigned to products with higher market shares conditional on price. The estimated qualities reveal substantial heterogeneity in product markets' scope for quality differentiation, or their “quality ladders”. I use this variation to explain the heterogeneous impact of low-wage competition on US manufacturing employment and output. Markets characterized by relatively short quality ladders are associated with larger employment and output declines resulting from low-wage competition.
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Citations
Cites
Distributional Effects of Globalization in Developing Countries
Goldberg, P. K., & Pavcnik, N. (2007) · Journal of Economic Literature · doi:10.1257/jel.45.1.39 · Cited by 539
Cited by
The Surprisingly Swift Decline of US Manufacturing Employment
Pierce, J. R., & Schott, P. K. (2016) · American Economic Review · doi:10.1257/aer.20131578 · Cited by 1,363
Fajgelbaum, P. D., Goldberg, P. K., Kennedy, P. J., & Khandelwal, A. K. (2020) · The Quarterly Journal of Economics · doi:10.1093/qje/qjz036 · Cited by 1,030
Self-citationExports, Export Destinations, and Skills
Brambilla, I., Lederman, D., & Porto, G. (2012) · American Economic Review · doi:10.1257/aer.102.7.3406 · Cited by 353
Nonhomotheticity and Bilateral Trade: Evidence and a Quantitative Explanation
(2011) · Econometrica · doi:10.3982/ecta8346 · Cited by 349
Knocking on Tax Haven’s Door: Multinational Firms and Transfer Pricing
Davies, R. B., Martin, J., Parenti, M., & Toubal, F. (2018) · The Review of Economics and Statistics · doi:10.1162/rest_a_00673 · Cited by 328
Metadata
- Authors
- KHANDELWAL, A.
- Venue
- Review of Economic Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2010-08-13
- Volume
- 77
- Issue
- 4
- Pages
- 1450-1476
- ISSN
- 0034-6527 (ISSN-L)
- OpenAlex
- W2109063066
- Cited by
- 835
- References
- 1
- FWCI
- 94.02
- Type
- journal article
- Language
- en
- Open access
- green
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