4.4 Article

Trade collapse, quality and food exports

Journal

APPLIED ECONOMICS LETTERS
Volume 20, Issue 18, Pages 1614-1617

Publisher

ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/13504851.2013.829191

Keywords

2008-2009 crisis; trade collapse; food quality; markup; F41; F42; Q17

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This article revisits the so-called Collapse in Quality' hypothesis, according to which, during the 2008-2009 crisis, higher quality goods experienced a stronger export reduction compared to low-quality ones. Using disaggregated trade data from three European countries that traditionally export high-quality food products - France, Italy and Spain - we do not find any econometric evidence supporting this hypothesis. In contrast, we provide preliminary evidence for the concurrent hypothesis, namely that firms reduced their markup to preserve market share.

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