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OECD Imports: Diversification and quality search

Author

Listed:
  • Olivier Cadot

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Céline Carrere

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Madina Kukenova

    (HEC Lausanne - Faculté des Hautes Etudes Commerciales (HEC Lausanne))

  • Vanessa Strauss-Khan

    (ESCP-EAP and CEPR - ESCP-EAP and CEPR)

Abstract
This paper explores the evolution of OECD imports over time and as a function of income levels, measuring the concentration of those imports across origin countries at the product level. We find evidence of diversification followed, in the very last years of the sample period (post-2000), by a slight reconcentration. This reconcentration is entirely explained by the growing importance of Chinese products in OECD imports. We also find evidence of relatively more volatile concentration levels for differentiated goods, consistent with a simple model of adverse selection and screening of suppliers by OECD buyers. Finally, we find that "accession" to OECD markets occurs directly (rather than after acquiring prior export experience on other markets) for more than half of the (extra-OECD) exporter/product pairs, but that one to eight years of experience enhances subsequent survival on OECD markets. Exports that reach OECD markets after more than eight years of experience elsewhere tend to survive less.

Suggested Citation

  • Olivier Cadot & Céline Carrere & Madina Kukenova & Vanessa Strauss-Khan, 2011. "OECD Imports: Diversification and quality search," CERDI Working papers halshs-00554319, HAL.
    • Handle: RePEc:hal:cdiwps:halshs-00554319
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00554319
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    Cited by:

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    2. Georges, Patrick & Mérette, Marcel, 2011. "Trade Diversification Away from the U.S. or North American Customs Union? A Review of Canada’s Trade Policy Options," Conference papers 332084, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Parteka, Aleksandra & Tamberi, Massimo, 2013. "Product diversification, relative specialisation and economic development: Import–export analysis," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 121-135.
    4. Doğan, Buhari & Ferraz, Diogo & Gupta, Monika & Duc Huynh, Toan Luu & Shahzadi, Irum, 2022. "Exploring the effects of import diversification on energy efficiency: Evidence from the OECD economies," Renewable Energy, Elsevier, vol. 189(C), pages 639-650.
    5. (ed.), 0. "Research Handbook on Economic Diplomacy," Books, Edward Elgar Publishing, number 16053.
    6. Gnangnon, Sèna Kimm, 2020. "Aid for Trade, Export Product Diversification and Import Product Diversification," EconStor Preprints 223021, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    Keywords

    Import diversification; international trade; OECD;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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