On the measurement of product variety in trade

By: Contributor(s): Material type: TextTextSeries: Policy Research Working Paper, No. 3213Publication details: Washington, D. C. The World Bank 2004Description: 11 pSubject(s): DDC classification:
  • 382
Summary: Product variety plays an important role in the theoretical work on monopolistic competition and trade, and recent empirical work has begun to quantify this for aggregate and disaggregate import demands. The authors discuss the measurement of product variety in trade, using a broad cross-section of industrial and developing countries and disaggregating across sectors. The authors calculate the export variety of countries in their sales to the United States, and relate the export variety indexes to country productivities. They confirm that countries with greater product variety in exports also have higher productivity. This may be due to their development of and access to these products. http://documents.worldbank.org/curated/en/916201468761660837/On-the-measurement-of-product-variety-in-trade
List(s) this item appears in: World Bank Working Paper Series
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Product variety plays an important role in the theoretical work on monopolistic competition and trade, and recent empirical work has begun to quantify this for aggregate and disaggregate import demands. The authors discuss the measurement of product variety in trade, using a broad cross-section of industrial and developing countries and disaggregating across sectors. The authors calculate the export variety of countries in their sales to the United States, and relate the export variety indexes to country productivities. They confirm that countries with greater product variety in exports also have higher productivity. This may be due to their development of and access to these products.

http://documents.worldbank.org/curated/en/916201468761660837/On-the-measurement-of-product-variety-in-trade

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