Search results for "Intra-industry trade"

Is Inequality Harmful for North-South Intra-Industry Trade Growth?

2007

QUALITY AND PRICES OF INTRA-EUROPEAN TRADE OF FOOD-INDUSTRY PRODUCTS

2000

The completion of the European Single Market should bring out an exploitation of comparative advantages in production and trade. It is usually assumed that, given the predominance of intraeuropean trade flows in the global import figures of the European Union, efficiency gains from trade creation could be potentially important. However, the analysis of the effects of the Single Market on trade specialisation with a greater degree of accuracy requires trade quality indicators to be available. This paper uses the theory of index numbers to establish the relative quality levels of the food industry shipments to the European Internal Market from European Union member countries. It is found a po…

Quality pricing-to-market

2014

We examine firm's pricing-to-market decisions in vertically differentiated industries featuring a large number of firms that compete monopolistically in the quality space. Firms sell goods of heterogeneous quality to consumers with non-homothetic preferences that differ in their income and thus their marginal willingness to pay for quality increments. We derive closed-form solutions for the pricing game under costly international trade, thus establishing existence and uniqueness. We then examine how the interaction of good quality and market demand for quality affects firms' pricing-to-market decisions. The relative price of high quality goods compared to that of low quality goods is an inc…