Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168268
Authors: 
Unger, Florian
Flach, Lisandra
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: International Trade and Trade Reforms II B15-V1
Abstract: 
We show that the effect of fixed costs on international trade is lower in industries with a high degree of vertical product differentiation. We extend an international trade model by endogenous quality investmetns and use both aggregate trade data and firm-level data to estimate gravity equations of exports. Accounting for quality lowers the positive gains from trade and leads to more heterogeneous effects across industries compared to a trade model without quality.
JEL: 
F12
F14
L11
Document Type: 
Conference Paper

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