OECD imports: Diversification of suppliers and quality search

Détails

ID Serval
serval:BIB_382903F5872A
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
OECD imports: Diversification of suppliers and quality search
Périodique
Review of World Economics / Weltwirtschaftliches Archiv
Auteur⸱e⸱s
Cadot  O., Carrère  C., Strauss-Kahn  V.
ISSN
1610-2878
Statut éditorial
Publié
Date de publication
02/2014
Peer-reviewed
Oui
Volume
150
Numéro
1
Pages
1-24
Langue
anglais
Résumé
We posit that OECD buyers are in a continuous search for best quality suppliers from developing countries. We build a simple model of adverse selection and quality screening which captures this feature. The model predicts that diversification happens by "bouts", or temporary episodes, during which OECD buyers search for high-quality suppliers. Each diversification episode is followed by a phase of re-concentration on the best performers, until those fail (which happens stochastically), triggering new search phases. The model also shows that concentration across origin is highly volatile, especially for goods with high-quality heterogeneity. Finally, as the set of suppliers expands and buyers continue sampling, the overall trend is an increased diversification across time. We empirical explore these conjectures using OECD imports over time (1963-2006) and measuring their concentration across 250 origin countries at the product level (1,300 products). We provide strong empirical evidence corroborating the model predictions.
Mots-clé
Import diversification, international trade, OECD, developing countries, suppliers search
Web of science
Création de la notice
23/06/2014 15:38
Dernière modification de la notice
21/08/2019 5:16
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