Given the increasing sensitivity of buyers in the richer countries
towards quality of goods they consume, low-quality exports largely
constrain export-growth of the developing countries. This Element
documents the attempts to estimate cross-country quality variations
and reviews the demand side and supply side explanations for the
low-quality phenomenon. It examines how trade policies can
incentivize export-quality upgrading, and discusses the underlying
channels through which a reverse causality from export-quality upon
within-country income or wage inequality may develop.
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