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North-South Trade and Supervision of the Social Quality of Goods from the South

Author

Listed:
  • Jean-Marc Cardebat
  • Patrice Cassagnard

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract

This text presents a duopolistic North/South model where the Southern firm can choose to produce ethically or not and to lie or not about the real social quality of its production. The goods from the South are assumed to be ethically unsound (i.e. dubious social content) while those from the North ethically sound. We then study the consequences of monitoring ethics in the North on the nature (fair or unfair) and the volume of North–South trade. On the one hand, an increase in the probability of inspection of goods from the South leads to an increase in imports to the North from the South. This result goes against the idea that this kind of social monitoring is akin to a protectionist measure. On the other hand, if monitoring is large enough that leads the Southern firm to produce ethically and the trade to be fair.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jean-Marc Cardebat & Patrice Cassagnard, 2010. "North-South Trade and Supervision of the Social Quality of Goods from the South," Post-Print hal-01881926, HAL.
    • Handle: RePEc:hal:journl:hal-01881926
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    Cited by:

    1. Patrice Cassagnard, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers hal-01880359, HAL.
    2. Patrice Cassagnard & Tendai Espinosa, 2022. "From boycott to buycott: is activism from the North good for the South?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(4), pages 1107-1135, November.
    3. Patrice CASSAGNARD & Tendai ESPINOSA, 2019. "From Boycott to Buycott: Is Activism from the North Good for the South?," Working Papers 2019-2020_3, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Dec 2019.
    4. Patrice CASSAGNARD, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers 10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2009.
    5. Okimoto, Madoka, 2015. "International price competition among food industries: The role of income, population and biased consumer preference," Economic Modelling, Elsevier, vol. 47(C), pages 327-339.
    6. Cassagnard Patrice & Thiam Mamadou, 2024. "How does consumer quality misperception change European Union antidumping actions?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(4), pages 1247-1275, November.
    7. Patrice Cassagnard & Tendai Espinosa, 2019. "From Boycott to Buycott: Is Activism from the North Good for the South?," Working Papers hal-02623685, HAL.
    8. Patrice Cassagnard, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working papers of CATT hal-01880359, HAL.
    9. Patrice Cassagnard & Tendai Espinosa, 2019. "From Boycott to Buycott: Is Activism from the North Good for the South?," Working papers of CATT hal-02623685, HAL.
    10. Julika Herzberg & Oliver Lorz, 2020. "Sourcing from conflict regions: Policies to improve transparency in international supply chains," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 395-407, May.

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