IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v104y2022i6p1121-1137.html
   My bibliography  Save this article

Collective Reputation in Trade: Evidence from the Chinese Dairy Industry

Author

Listed:
  • Jie Bai

    (Harvard Kennedy School)

  • Ludovica Gazze

    (University of Warwick, Department of Economics)

  • Yukun Wang

    (Cornell University, Department of Economics)

Abstract

The existence of collective reputation implies an important externality. Among firms trading internationally, quality shocks about one firm's products could affect the demand of other firms from the same origin country. We study such a reputation spillover in the context of a large-scale scandal that affected the Chinese dairy industry in 2008. Leveraging detailed firm-product level administrative data and official quality inspection reports, we document sizable reputation spillovers on uncontaminated firms. We further investigate potential mechanisms that could mediate the strength of collective reputation, including information accuracy, observability of the supply chain, and prior export experience.

Suggested Citation

  • Jie Bai & Ludovica Gazze & Yukun Wang, 2022. "Collective Reputation in Trade: Evidence from the Chinese Dairy Industry," The Review of Economics and Statistics, MIT Press, vol. 104(6), pages 1121-1137, November.
    • Handle: RePEc:tpr:restat:v:104:y:2022:i:6:p:1121-1137
    DOI: 10.1162/rest_a_01032
    as

    Download full text from publisher

    File URL: https://doi.org/10.1162/rest_a_01032
    Download Restriction: Access to PDF is restricted to subscribers.
    File URL: https://libkey.io/10.1162/rest_a_01032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elisa Navarra, 2022. "Stock Market Response to Firms’ Misconduct," Working Papers ECARES 2022-40, ULB -- Universite Libre de Bruxelles.
    2. Pecchioli, Bruno & Moroz, David, 2023. "Do geographical appellations provide useful quality signals? The case of Scotch single malt whiskies," Economic Modelling, Elsevier, vol. 124(C).
    3. Wenshou Yan & Yan Cai & Xuan Guo, 2023. "How can trade partners be chosen when facing food scandals? China's milk scandal as a natural experiment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(4), pages 603-635, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:104:y:2022:i:6:p:1121-1137. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.