Product Quality, Preference Diversity and Intra-Industry Trade*

Kim, Taegi; Niem, Le Duc

doi:10.1111/j.1467-9957.2010.02210.x

Cited by 5 publications

(3 citation statements)

References 12 publications

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“…As in part III of [6], our model focuses on trade of goods in a sector level. This paper is similar to [8] which explained the impact of preference diversity and relative country size on intra-industry trade in an industry with a vertically differentiated product. However, contrary to [8], which focuses on the effects of demand side on trade, this paper focuses on the effects of technology change on trade.…”

Section: Introductionmentioning

confidence: 60%

Technology, Preference for Quality, and Vertical Intra-Industry Trade

Niem¹,

Kim²

2010

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This paper provides a simple theoretical model to investigate determinants of the vertical IIT based on Bertrand price competition. We find that the volume of trade is higher among countries where R&D investments are larger. In addition, the vertical IIT share increases with the similarity between two countries in terms of technology and per-capita income. Our theoretical findings are consistent with recent empirical findings

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Section: Introductionmentioning

confidence: 60%

Technology, Preference for Quality, and Vertical Intra-Industry Trade

Niem¹,

Kim²

2010

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“…Even when domestic production is sufficient to cater for domestic demand, differences in variety between domestically produced cereals and foreign substitutes could still drive cereals imports. This could even be stronger if consumers have liberty to maximize utility by revealing their tastes and preferences over local cereals and imported substitutes (Kim & Niem, 2011; Kokko & Tingvall, 2014; Streletskaya et al, 2023). The argument for intra‐industry trade on cereals commodities notwithstanding, Kenya is a net food importer (Kenya National Bureau of Statistics, 2023).…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of the Russia–Ukraine war on grain and fertilizer supply: Evidence from Kenya

Mwatu

2023

World Food Policy

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This paper examines the impact of the Russia–Ukraine war on grain and fertilizer supply to Kenya as the sixth largest economy in Africa using the Regression Discontinuity estimator on monthly data spanning from January 2017 to August 2022. The share of the quantity and value of cereals and fertilizer imports by Kenya from Russia and Ukraine in the total quantity and value of cereals and fertilizer imports by Kenya from world are utilized. The share of freight and insurance costs on grain and fertilizer imports by Kenya from Russia and Ukraine in total freight and insurance costs on grain and fertilizer from world have also been used. After controlling for sensitivity and incorporating depreciation of the exchange rate and a dummy on drought as covariates, the results indicate the war has had insignificant impact on imports of grain and fertilizer by Kenya though the impact is negative for grain but positive for fertilizer. The findings have policy implications touching on need for African countries to diversify import sources for grain and fertilizer, enhance productive capacities through investment on irrigation, strengthen diplomatic ties with existing import sources for grain and fertilizer, and invest in climate action to tackle drought incidences.

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“…Later contributions include Porter [1990] and Saxenian [1994]. More recently, Kim and Niem [2011] study the impact of preference diversity and relative country size on intra-industry trade (IIT) in an industry with a vertically differentiated product. Niem and Kim [2010] provide a simple theoretical model to investigate determinants of the vertical IIT based on Bertrand price competition.…”

Section: Patterns Of Polish Intra-industry Trade 1980-2009mentioning

confidence: 99%

Evolving sophistication of trade patterns in a transition economy - machinery exports of Poland 1980-2009

Kellman,

Shachmurove

2012

EBR

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Polish history leads to an expectation of exceptional adaptability to changes in the international economic environment. In the period bigenning with Solidarity at Gdansk to the present, Poland has faced huge structural dislocations. Is there any objective indication that the structural changes needed to successfully compete as a full-fledged European Union member were forthcoming? This study examines the behavior of four separate measures of embodied "sophistication." Though methodologically unrelated, these disparate indices tell a common story of rapid and substantial progress in the "battlefield" of a new member of the European Union. (original abstract)

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Product Quality, Preference Diversity and Intra-Industry Trade*

Cited by 5 publications

References 12 publications

Technology, Preference for Quality, and Vertical Intra-Industry Trade

Technology, Preference for Quality, and Vertical Intra-Industry Trade

Impact of the Russia–Ukraine war on grain and fertilizer supply: Evidence from Kenya

Evolving sophistication of trade patterns in a transition economy - machinery exports of Poland 1980-2009

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