Export industry policy and reputational comparative advantage
AbstractCountry-of-origin reputations are endogenized in this paper and it is shown that otherwise identical countries can be correctly perceived as differing in their percentage of high-quality producers. These self-fulfilling reputations determine not only the average quality of a countryâs exports but also the type of products in which a country specializes. Hence, the pattern of international trade can be determined by this âreputational comparative advantage.â An inferior country-of-origin reputation leads to lower national welfare, therefore, several trade and industrial policies that can improve country-of-origin reputation are examined.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Economics.
Volume (Year): 59 (2003)
Issue (Month): 2 (March)
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Web page: http://www.elsevier.com/locate/inca/505552
Other versions of this item:
- Richard Chisik, 2010. "Export Industry Policy and Reputational Comparative Advantage," Working Papers 017, Ryerson University, Department of Economics.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
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