Does input sector liberalization promote quality innovation and exports?
AbstractThis paper examines the relationship between input sector liberalization and product quality innovation and export orientation by a LDC firm given the complementarity between high input quality and high product quality. We show that input sector liberalization per se may not induce quality innovation and outward orientation. In fact in some situations ceteris paribus input sector liberalization may increase the odds in favour of low quality production. We show that total output sector liberalization, or surprisingly, a suitable degree of output sector protection then is needed to be combined with input sector liberalization so that quality innovation is induced.
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Bibliographic InfoArticle provided by Elsevier in its journal International Review of Economics & Finance.
Volume (Year): 15 (2006)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/inca/620165
Other versions of this item:
- Rajat Acharyya & Swapnendu Bandyopadhyay(Banerjee), 2004. "Does Input Sector Liberalization Promote Quality Innovation and Exports?," Econometric Society 2004 Far Eastern Meetings 650, Econometric Society.
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
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