Open Economies Review

, Volume 22, Issue 5, pp 955–968 | Cite as

A Measure of Trade Induced Adjustment in Volume and Quality Space

  • Abdul K. M. Azhar
  • Robert James Ross Elliott
RESEARCH ARTICLE

Abstract

In this paper we contribute to the literature on the measurement of international trade flows. Specifically, we combine changes in the volume and quality in matched trade changes to present a simple new index together with a geometric framework that can be used to visualise changes in quality and volume simultaneously. We illustrate the usefulness of our simple extension with data for trade between Malaysia and China between 1994 and 2004.

Keywords

Exports Intra-industry trade Adjustment costs Quality Product differentiation 

JEL classification

F19 

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • Abdul K. M. Azhar
    • 1
  • Robert James Ross Elliott
    • 2
  1. 1.GSMUniversiti Putra MalaysiaSerdangMalaysia
  2. 2.Department of EconomicsUniversity of BirminghamBirminghamUK

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