Product Quality and the International Location of Manufacturing Industry
AbstractThis paper investigates how trade liberalisation affects manufacturing production in the South when consumer perception of product substitutability in North and South is asymmetric. Consumers in the former view foreign goods as poorer substitutes of domestic varieties, while in the latter foreign and domestic varieties are equally substitutable. The main result of our exercise is that asymmetric product substitutability gives firms in the North better access to markets in the South. Local manufacturing production then becomes unsustainable even at positive trade costs, while deepening trade liberalisation usually results in the South specialising in non-industrial production.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.
Volume (Year): 17 (2002)
Issue (Month): ()
trade liberalization; north-south trade; asymmetric product substitutability;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jong-Eun Lee).
If references are entirely missing, you can add them using this form.