OECD Imports: Diversification of Suppliers and Quality Search

33 Pages Posted: 20 Apr 2016

See all articles by Olivier Cadot

Olivier Cadot

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne); Centre for Economic Policy Research (CEPR); World Bank

Celine Carrere

Université d'Auvergne - Clermont 1 - CERDI

Vanessa Strauss-Kahn

INSEAD - Economics and Political Sciences

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2011

Abstract

This paper explores the evolution of OECD imports over time, measuring their concentration across origin countries at the product level. The authors find evidence of diversification followed, in the very last years of the sample period (post-2000), by a slight re-concentration. This re-concentration is entirely explained by the growing importance of Chinese products in OECD imports. They also find evidence of relatively more volatile concentration levels for goods with high quality heterogeneity, with temporary phases of re-concentration on goods with higher unit values. Both findings are consistent with a simple model of adverse selection and quality screening by OECD buyers predicting that diversification happens by "bouts" rather than continuously, with temporary re-concentration on higher-quality suppliers.

Keywords: Markets and Market Access, Microfinance, Labor Policies, E-Business, Agribusiness & Markets

Suggested Citation

Cadot, Olivier and Carrere, Celine and Strauss-Kahn, Vanessa, OECD Imports: Diversification of Suppliers and Quality Search (April 1, 2011). World Bank Policy Research Working Paper No. 5627, Available at SSRN: https://ssrn.com/abstract=1804789

Olivier Cadot (Contact Author)

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne) ( email )

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Centre for Economic Policy Research (CEPR)

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World Bank ( email )

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Celine Carrere

Université d'Auvergne - Clermont 1 - CERDI ( email )

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France

Vanessa Strauss-Kahn

INSEAD - Economics and Political Sciences ( email )

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