Date: September 24, 2009

Time: 12:30 pm - 2:30 pm

Venue: MC4-100

Speakers:

• William F. Maloney, Lead Economist, DECRG
• Danieal Lederman, Senior Economist, DECRG

Summary: In this seminar, Bill Maloney and Daniel Lederman will discuss main results of their forthcoming paper on quality of exports from Latin America. The paper explores several dimensions of the relationship between trade volume and quality of exports and provides new insights and empirical evidence that shed light on crucial questions of the current growth debate such as: “Does what you trade matter? Are some goods “better” or of “higher quality” than others?” The paper is organized around four  themes: i)  a discussion of the theoretical reasons and empirical evidence on why one good might be preferred to another based on externalities and rents, and the two characteristics that can potentially justify support of a good against market signals; ii) an examination of  whether there is consistent evidence that certain sectors provide higher “skill premia” than other sectors and the associated question if these “Brainy Goods” should be encouraged due to market failures in the accumulation of education; iii) an analysis of new evidence on the variance across countries in differences of quality, approximated by price of export products; and iv) an exploration of the role of product innovation for diversification, including a discussion of  the new evidence on the importance of export diversification for managing macro volatility. 

• Paper (pdf - 670k)

The Export competitiveness Thematic Group is an initiative led by the International Trade Department of the World Bank to mainstream trade in countries' development strategies through collaboration between PREM and FPD sectors.  It is working to develop a comprehensive framework for development assistance on export competitiveness.  It offers advisory services  and is developing diagnostic tools, methodologies and benchmarking indicators for the Bank and IFC staff working in this area.  Please visit the website (http://www.worldbank.org/competitiveness) or contact Gerard McLinden (gmclinden@worldbank.org) or Mallika Shakya (expcom@worldbank.org).