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Determinants of trade: the role of innovation in presence of quality standards

Listed author(s):
  • Maria Cipollina

    (Molise University)

  • Federica Demaria

    ()

    (UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - CIHEAM - Centre International des Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Filomena Pietrovito

    (Molise University)

This paper analyses the role that quality standards and innovation play on trade volume, by using a gravity model. The role of innovative activity and quality standards in enhancing trade performance is widely accepted in the literature. However, in this paper, we argue that the net effect of quality standards on trade depends on the producers’ ability to innovate and comply with these requirements. In particular, by using a sample of 60 exporting countries and 57 importing countries, for a wide range of 26 manufacturing industries over the period 1995-2000, we show that the most innovative sectors are more likely to enhance the overall quality of exports, and then gain a competitive advantage. We also find that this effect depends on the level of technology intensity at sector-level and on the level of economic development of exporting country.

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Paper provided by HAL in its series Working Papers with number hal-01259114.

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Date of creation: 2015
Publication status: Published in [University works] auto-saisine. 2015, 27 p
Handle: RePEc:hal:wpaper:hal-01259114
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01259114v2
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