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Quality requirements in developing countries

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  • An, Galina
  • Puttitanun, Thitima

Abstract

This paper theoretically explores how quality standards imposed by subsidiaries of multinational enterprises on local suppliers in developing countries can influence the local intermediate goods industries: they can trigger the adoption of better techniques and processes, thereby increasing the technological capability of the host country; they can also induce local innovation, a situation described in many case studies of developing countries. However, if a host country is underdeveloped, the presence of multinational firms might not bring any significant changes to the economy.

Suggested Citation

  • An, Galina & Puttitanun, Thitima, 2010. "Quality requirements in developing countries," Journal of Economics and Business, Elsevier, vol. 62(2), pages 94-115, March.
    • Handle: RePEc:eee:jebusi:v:62:y::i:2:p:94-115
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