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ARUdA
Article . 2010
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INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION

Authors: AFFORTUNATO, FRANCESCA; CIOMMI, MARIATERESA; FURIA, Donatella; VACCARO, ENRICO;

INTERNATIONAL SPECIALIZATION AND VERTICAL DIFFERENTIATION

Abstract

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.

Country
Italy
Keywords

creative sectors, International specialization, Lafay Index, Relative Quality Index, creative sectors, HF5001-6182, HG1-9999, Lafay Index, Relative Quality Index, Business, International specialization, Finance, jel: jel:Z1, jel: jel:F59, jel: jel:F1, jel: jel:D4

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
gold
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