INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION
During the last decades, market segmentation and intra-industry trade have become increasingly relevant. The underlying hypothesis of our work is that distinct articles have heterogeneous potential for vertical differentiation, implying that different patterns of international specialization should...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | deu |
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University of Oradea
2010-07-01
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| Series: | Annals of the University of Oradea: Economic Science |
| Subjects: | |
| Online Access: | http://anale.steconomiceuoradea.ro/volume/2010/n1/022.pdf |
| _version_ | 1818481847180460032 |
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| author | Furia Donatella Vaccaro Enrico Affortunato Francesca Ciommi Mariateresa |
| author_facet | Furia Donatella Vaccaro Enrico Affortunato Francesca Ciommi Mariateresa |
| author_sort | Furia Donatella |
| collection | DOAJ |
| description | During the last decades, market segmentation and intra-industry trade have become increasingly relevant. The underlying hypothesis of our work is that distinct articles have heterogeneous potential for vertical differentiation, implying that different patterns of international specialization should be identifiable. We carry out an analysis on revealed comparative advantage (through the Lafay Index) in specific sectors of interest. Then we highlight the emergence of diverse degrees of product quality differentiation among sectors (through the Relative Quality Index). Results confirm our hypothesis. Indeed it appears that only certain goods, for which the pace of either creative or technological innovation (or both) is particularly fast, present a high degree of vertical differentiation and market segmentation. This allows countries to specialize in a particular product variety and gain market power position for that variety. These findings should be taken in due consideration when designing trade policies. |
| first_indexed | 2024-12-10T11:40:29Z |
| format | Article |
| id | doaj.art-d8c18c95e5e240b2ab44ceef4fb3552e |
| institution | Directory Open Access Journal |
| issn | 1222-569X 1582-5450 |
| language | deu |
| last_indexed | 2024-12-10T11:40:29Z |
| publishDate | 2010-07-01 |
| publisher | University of Oradea |
| record_format | Article |
| series | Annals of the University of Oradea: Economic Science |
| spelling | doaj.art-d8c18c95e5e240b2ab44ceef4fb3552e2022-12-22T01:50:17ZdeuUniversity of OradeaAnnals of the University of Oradea: Economic Science1222-569X1582-54502010-07-0111146150INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATIONFuria DonatellaVaccaro EnricoAffortunato FrancescaCiommi MariateresaDuring the last decades, market segmentation and intra-industry trade have become increasingly relevant. The underlying hypothesis of our work is that distinct articles have heterogeneous potential for vertical differentiation, implying that different patterns of international specialization should be identifiable. We carry out an analysis on revealed comparative advantage (through the Lafay Index) in specific sectors of interest. Then we highlight the emergence of diverse degrees of product quality differentiation among sectors (through the Relative Quality Index). Results confirm our hypothesis. Indeed it appears that only certain goods, for which the pace of either creative or technological innovation (or both) is particularly fast, present a high degree of vertical differentiation and market segmentation. This allows countries to specialize in a particular product variety and gain market power position for that variety. These findings should be taken in due consideration when designing trade policies.http://anale.steconomiceuoradea.ro/volume/2010/n1/022.pdf International specializationLafay IndexRelative Quality Indexcreative sectors |
| spellingShingle | Furia Donatella Vaccaro Enrico Affortunato Francesca Ciommi Mariateresa INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION Annals of the University of Oradea: Economic Science International specialization Lafay Index Relative Quality Index creative sectors |
| title | INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION |
| title_full | INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION |
| title_fullStr | INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION |
| title_full_unstemmed | INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION |
| title_short | INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION |
| title_sort | international specialization and vertical differentiation |
| topic | International specialization Lafay Index Relative Quality Index creative sectors |
| url | http://anale.steconomiceuoradea.ro/volume/2010/n1/022.pdf |
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