Trade collapse, quality and food exports

By:

CURZI, D

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Material type: Text

TextSeries: Applied Economics Letters ; Volume , number ,New York Taylorn & Francis 2013Content type:

text

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unmediated

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volume

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Summary: This article revisits the so-called ‘Collapse in Quality’ hypothesis, according to which, during the 2008–2009 crisis, higher quality goods experienced a stronger export reduction compared to low-quality ones. Using disaggregated trade data from three European countries that traditionally export high-quality food products – France, Italy and Spain – we do not find any econometric evidence supporting this hypothesis. In contrast, we provide preliminary evidence for the concurrent hypothesis, namely that firms reduced their markup to preserve market share.

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Holdings
Item type	Current library	Call number	Vol info	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HB1.A666 APP (Browse shelf(Opens below))	Vol.20 , No.16 - 18 (Dec 2013)	Not for loan	For In House Use Only

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This article revisits the so-called ‘Collapse in Quality’ hypothesis, according to which, during the 2008–2009 crisis, higher quality goods experienced a stronger export reduction compared to low-quality ones. Using disaggregated trade data from three European countries that traditionally export high-quality food products – France, Italy and Spain – we do not find any econometric evidence supporting this hypothesis. In contrast, we provide preliminary evidence for the concurrent hypothesis, namely that firms reduced their markup to preserve market share.

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