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Export Quality in Developing Countries
Author:
Christian Henn
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,
Mr. Chris Papageorgiou
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Mr. Nikola Spatafora
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Series:
IMF Working Papers
Volume/Issue:
Volume 2013: Issue 108
Language:
English
Publication Date:
15 May 2013
DOI:
https://doi.org/10.5089/9781484351635.001
ISBN:
9781484351635
ISSN:
1018-5941
Pages:
34
Keywords:
WP; growth rate; unit value; Exports; Product Quality; Upgrading; Developing Countries; export quality; quality estimate; growth policy; Manufacturing; Personal income; Human capital; Agricultural sector; South Asia; Sub-Saharan Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper develops new, far more extensive estimates of export quality, covering 178 countries and hundreds of products over 1962–2010. Quality upgrading is particularly rapid during the early stages of development, with quality convergence largely completed as a country reaches upper middle-income status. There is significant cross-country heterogeneity in quality growth rates. Within any given product line, quality converges both conditionally and unconditionally to the world frontier; increases in institutional quality and human capital are associated with faster quality upgrading. In turn, faster growth in quality is associated with more rapid output growth. The evidence suggests that quality upgrading is best encouraged through a broadly conducive domestic environment, rather than sector-specific policies. Diversification is important to create new upgrading opportunities.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund