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International Procurement as a Signal of Export Quality

Author

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  • Collie, David R
  • Hviid, Morten

Abstract

In 1996, the British Government was accused of a protectionist "buy British" campaign when it awarded a contract for army ambulances to Land Rover. We present a model where the procurement decision of the government affects the perception of consumers in the rest of the world about the quality of the domestic firm's product relative to that of a foreign rival's product. The model compares the outcome when the government's only concern is value for money with the outcome when the government takes account of the effect of its decision on export sales of the domestic firm.

Suggested Citation

  • Collie, David R & Hviid, Morten, 2001. "International Procurement as a Signal of Export Quality," Economic Journal, Royal Economic Society, vol. 111(470), pages 374-390, April.
    • Handle: RePEc:ecj:econjl:v:111:y:2001:i:470:p:374-90
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    Cited by:

    1. Chiara Carboni & Elisabetta Iossa & Gianpiero Mattera, 2018. "Barriers towards foreign firms in international public procurement markets: a review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(1), pages 85-107, March.
    2. Catherine WADDAMS PRICE & Bitten BRIGHAM & Lin FITZGERALD, 2008. "Service Quality In Regulated Network Industries," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(2), pages 197-225, June.

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