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Export Industry Policy and Reputational Comparative Advantage

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Author Info
Richard Chisik () (Department of Economics, Florida International University)

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Abstract

Country-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 country’s exports but also the type of products in which a country specializes. Hence, the pattern of international trade can be determined by this reputational comparative advantage. 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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File URL: http://www.fiu.edu/orgs/economics/wp2003/01-03.pdf
File Format: application/pdf
File Function: First version, 2001
Download Restriction: no

Publisher Info
Paper provided by Florida International University, Department of Economics in its series Working Papers with number 0103.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 36 pages
Date of creation: Jun 2001
Date of revision:
Handle: RePEc:fiu:wpaper:0103

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Web page: http://www.fiu.edu/orgs/economics/
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Related research
Keywords: Country-of-Origin; Quality Reputations; Statistical Discrimination; Industrial Policy.;

Other versions of this item:

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
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

Cited by:
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  1. Dinopoulos, Elias & Livanis, Grigorios & West, Carol, 2005. "How Cool is C.O.O.L.?," Working Papers 15658, University of Florida, International Agricultural Trade and Policy Center. [Downloadable!]
  2. Justus Haucap & Christian Wey & Jens Barmbold, 1998. "Location Costs, Product Quality, and Implicit Franchise Contracts," CIG Working Papers FS IV 98-08, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
    Other versions:
  3. Brenton, Paul & Hoppe, Mombert, 2007. "Clothing and export diversification : still a route to growth for low-income countries ?," Policy Research Working Paper Series 4343, The World Bank. [Downloadable!]
  4. Luis Araujo & Emanuel Ornelas, 2005. "Trust-Based Trade," IBMEC RJ Economics Discussion Papers 2005-08, Economics Research Group, IBMEC Business School - Rio de Janeiro. [Downloadable!]
    Other versions:
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This page was last updated on 2009-11-30.

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