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Certification of Origin as a Non-Tariff Barrier

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  • Claire Chambolle
  • Eric Giraud-Héraud

Abstract

This paper puts forward the opinion that the certification of origin constitutes another type of non-tariff barrier. Indeed, certification of origin often combines both a quantity restriction and a sort of quality cost subsidy. We consider the canonical model of strategic trade policy, whereby two firms located respectively in the home country and in a foreign country are competing on the domestic market. In this framework, we show how certification can allow the domestic firm to position itself as a high quality producer. If, however, the certified firm offers the low quality good, then consumers' surplus may be improved. Copyright Blackwell Publishing Ltd 2005..

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of International Economics.

Volume (Year): 13 (2005)
Issue (Month): 3 (08)
Pages: 461-471

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Handle: RePEc:bla:reviec:v:13:y:2005:i:3:p:461-471

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  1. Kala Krishna, 1985. "Protection and the Product Line: Monopoly and Product Quality," NBER Working Papers 1537, National Bureau of Economic Research, Inc.
  2. Herguera, Inigo & Kujal, Praveen & Petrakis, Emmanuel, 2000. "Quantity restrictions and endogenous quality choice," International Journal of Industrial Organization, Elsevier, vol. 18(8), pages 1259-1277, December.
  3. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-31, June.
  4. Analysis, A Welfare & Das, Satya P. & Donnenfeld, Shabtai, 1987. "Trade policy and its impact on quality of imports," Journal of International Economics, Elsevier, vol. 23(1-2), pages 77-95, August.
  5. Shapiro, Carl, 1983. "Premiums for High Quality Products as Returns to Reputations," The Quarterly Journal of Economics, MIT Press, vol. 98(4), pages 659-79, November.
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Cited by:
  1. Sven Anders & Julie A. Caswell, 2008. "The Benefits and Costs of Proliferation of Geographical Labelling for Developing Countries," Working Papers 2008-7, University of Massachusetts Amherst, Department of Resource Economics.

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