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On the measurement of product variety in trade, Volume 1
 
Author:Feenstra, Robert; Hiau Looi Kee; Collection Title:Policy, Research working paper ; no. WPS 3213
Country:World; Date Stored:2004/06/02
Document Date:2004/02/01Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; Economic Theory & Research; Banks & Banking Reform; Biodiversity; Labor Policies; Poverty and TradeLanguage:English
Region:The World RegionReport Number:WPS3213
Volume No:1  

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.

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