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Export industry policy and reputational comparative advantage

  • Chisik, Richard

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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Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 59 (2003)
Issue (Month): 2 (March)
Pages: 423-451

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Handle: RePEc:eee:inecon:v:59:y:2003:i:2:p:423-451
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505552

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