International Trade Effects: Lower Cost or Higher Quality?

Authors

  • Le Duc Niem Dean of faculty of Economics, Tay Nguyen University, 567 Le Duan Street, Buon Ma Thuot

DOI:

https://doi.org/10.3126/jodas.v22i1-2.13461

Keywords:

Vertical intra-industry trade, new trade theory and product quality

Abstract

In this paper, we modify the model of Liao (2008) to investigate the trade of quality differentiated goods between countries. We show that main effects of the trade are on quality improvement of all goods and the trade does not make the goods cheaper. Thus, we argue that New Trade Theory might not explain international trade that is based on quality differentiation.

The Journal of Development and Administrative Studies, Vol. 22, No. 1-2, pp. 15-26, 2014

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Published

2015-09-22

How to Cite

Niem, L. D. (2015). International Trade Effects: Lower Cost or Higher Quality?. Journal of Development and Administrative Studies, 22(1-2), 15–26. https://doi.org/10.3126/jodas.v22i1-2.13461

Issue

Vol. 22 No. 1-2 (2014)

Section

Articles

License

The copyright of the accepted articles is reserved by the Centre for Economic Development and Administration (CEDA), Tribhuvan University (TU).  No part of the article published in this journal should be reproduced except provided by the law currently in force without the written consent of the centre.