Export quality in the machinery sector: Some evidence from main competitors

Abstract

The paper compares the export quality of Italy, Germany, Japan and China. The empirical analysis is based on export unit value for a sample of machinery products exported to the USA over the decade 1996-2006. The results point to four stylised facts. First, Italy, Germany and Japan are positioned in production with high unit value. Second, some evidence of qualitative upgrading of Italian exports is found in the machinery industry. Third, German exports show the highest quality in all the machinery divisions. Finally, China has dramatically increased its medium-high technology exports in the course of the decade, but these are concentrated in the lowest quality segment of the market. Nevertheless, Chinese unit value of machinery exports are rising over time, suggesting a qualitative catching-up