Trade, Product Variety and Welfare: A Quantitative Assessment for the Transition Economies in Central and Eastern Europe

Funke, Michael; Ruhwedel, Ralf

doi:10.2139/ssrn.1015486

Cited by 18 publications

(3 citation statements)

References 16 publications

(16 reference statements)

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“…As long as the import varieties are larger and the elasticity of substitution is smaller, the equivalent GDP is greater. Following this approach, Funke and Ruhwedel (2003) calculate the welfare gains. Feenstra (1994) proposes a method that allows quantification of the effect that newly imported varieties have on import price, and apply this to US data.…”

Section: Determine Thatmentioning

confidence: 99%

China's Penetration of the Korean Market: Stylized Facts and Welfare Effect

Kang

Ahn

2010

China and World Economy

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China's penetration of the world market has been impressive. This paper uses highly disaggregated Korean import data (from 1992 to 2008) to examine China's penetration of the Korean market in the context of the composition of value (the extensive and intensive margins) and the product type (homogeneous and differentiated) in trade. The increase in Chinese imports has been attributed to the rapid increase in the import of new products (the extensive margin) and of existing products (the intensive margin). However, the growth rate of new products decelerated in the 2000s. The growth in the intensive margin was due to quantity, not price. Chinese imports to Korea did not improve over the period in terms of quality. Although Chinese products became cheaper, they were more differentiated over time. Welfare gains were realized through the expanded introduction of new products from China. However, much of the gains from Korea's Chinese product import boom were realized in earlier years (1992-2000) because even though imported products became more differentiated, the increase in the extensive margin was lower in more recent years (2001-2008). Copyright (c) 2010 The Authors China & World Economy (c) 2010 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

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Section: Determine Thatmentioning

confidence: 99%

China's Penetration of the Korean Market: Stylized Facts and Welfare Effect

Kang

Ahn

2010

China and World Economy

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“…Panagariya (2004) reports similar results for India, based on work by one of his doctoral students. Funke and Ruhwedel (2003) find substantial increases in product variety in international trade for 14 central and eastern European countries after the fall of the Soviet Union[12].…”

Section: Modeling Transaction Costs and Developmentmentioning

confidence: 99%

Transaction costs, information technology and development

Singh

2008

Indian Growth and Development Review

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This paper explores potential channels through which information technology (IT) affects economic development. The channel emphasized here is the reduction of transaction costs through the use of information technology. We discuss the nature of transaction costs, their possible impacts on economic outcomes, and the impacts of IT on transaction costs. We provide a theoretical discussion of how a reduction in transaction costs may affect the number of intermediate goods that are produced, and in turn how that number may affect the development path of the economy. We then draw on our fieldwork in rural India that examined the economics of rural Internet kiosks, and relate this multifaceted case study to the theoretical discussion of transaction costs. We conclude with a broader discussion of the potential impact of IT on developing economies.

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“…Funke and Ruhwedel (2003) use export variety measures to calculate the welfare gains from trade liberalization in Central and Eastern Europe.…”

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Export Variety and Country Productivity

Feenstra¹,

Kee²

2004

Policy Research Working Papers

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for helpful comments. Research funding from the World Bank is cordially acknowledge. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors, and do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. The views expressed herein are those of the author(s) and not necessarily those of the National Bureau of Economic Research.

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Trade, Product Variety and Welfare: A Quantitative Assessment for the Transition Economies in Central and Eastern Europe

Abstract: All opinions expressed are those of the authors and do not necessarily reflect the views of the Bank of Finland.

Cited by 18 publications

References 16 publications

China's Penetration of the Korean Market: Stylized Facts and Welfare Effect

China's Penetration of the Korean Market: Stylized Facts and Welfare Effect

Transaction costs, information technology and development

Export Variety and Country Productivity

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