OECD Imports : Diversification of Suppliers and Quality Search
This paper explores the evolution of OECD imports over time, measuring their concentration across origin countries at the product level. The authors find evidence of diversification followed, in the very last years of the sample period (post-2000),...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110406083447 http://hdl.handle.net/10986/3393 |
| Summary: | This paper explores the evolution of
OECD imports over time, measuring their concentration across
origin countries at the product level. The authors find
evidence of diversification followed, in the very last years
of the sample period (post-2000), by a slight
re-concentration. This re-concentration is entirely
explained by the growing importance of Chinese products in
OECD imports. They also find evidence of relatively more
volatile concentration levels for goods with high quality
heterogeneity, with temporary phases of re-concentration on
goods with higher unit values. Both findings are consistent
with a simple model of adverse selection and quality
screening by OECD buyers predicting that diversification
happens by "bouts" rather than continuously, with
temporary re-concentration on higher-quality suppliers. |
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