Reputational Comparative Advantage and Multinational Enterprise
AbstractFor a firm without a readily identifiable brand name, quality reputation may solely reflect the country of origin. In this article I endogenize these country-of-origin reputations and show that these self-fulfilling reputations determine not only the average quality of a country's exports but also the type of products in which a country specializes. Hence, the pattern of international trade can be determined by reputational comparative advantage. This specialization can also establish the location of the host and the parent firm in a multinational enterprise. Furthermore, this reputation effect can identify whether internalization or licensing is more likely to occur. Copyright 2002, Oxford University Press.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 40 (2002)
Issue (Month): 4 (October)
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Other versions of this item:
- Richard Chisik, 2010. "Reputational Comparative Advantage and Multinational Enterprise," Working Papers 016, Ryerson University, Department of Economics.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- 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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- Stephen B. DeLoach & Jayoti Das, 2008.
"Resolving the Paradox of Social Standards and Export Competitiveness,"
2008-03, Elon University, Department of Economics.
- Stephen DeLoach & Jayoti Das, 2008. "Resolving the paradox of social standards and export competitiveness," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 17(4), pages 467-483.
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