Export Industry Policy and Reputational Comparative Advantage
AbstractCountry-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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Bibliographic InfoPaper provided by Ryerson University, Department of Economics in its series Working Papers with number 017.
Length: 36 pages
Date of creation: Aug 2010
Date of revision:
Country-of-Origin; Quality Reputations; Statistical Discrimination; Industrial Policy.;
Other versions of this item:
- Chisik, Richard, 2003. "Export industry policy and reputational comparative advantage," Journal of International Economics, Elsevier, vol. 59(2), pages 423-451, March.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- 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
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