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Industrial Organization and Product Quality: Evidence From South Korean and Taiwanese Exports

  • Dani Rodrik

The central focus of this paper is on the relationship between domestic market structure and export performance. It evaluates the hypothesis that more concentrated industrial sectors can achieve more easily the transition from standardized, labor-intensive manufactures to sophisticated, skill intensive products, as such industries are better able to cope with the inevitable reputational externalities involved in producing high-quality goods for foreign markets. South Korea and Taiwan provide a good test of the theory, as they have sharply different market structures. The results of the empirical analysis provide strong support for the hypothesis.

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File URL: http://www.nber.org/papers/w2722.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2722.

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Date of creation: Sep 1988
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Publication status: published as M. Alasdair Smith and Paul R. Krugman, editors. Empirical Studies of Strategic Trade Policy. Chicago and London: University of Chicago Press 1994
Handle: RePEc:nbr:nberwo:2722
Note: ITI IFM
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  1. -, 1987. "Evolución de la economía brasileña," Informe Estadístico – Oficina de la CEPAL en Brasilia 27977, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  2. -, 1987. "Planning for a fresh social and economic dynamic," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
  3. Bagwell, Kyle & Staiger, Robert W., 1989. "The role of export subsidies when product quality is unknown," Journal of International Economics, Elsevier, vol. 27(1-2), pages 69-89, August.
  4. Chiang, Shih-Chen & Masson, Robert T, 1988. "Domestic Industrial Structure and Export Quality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(2), pages 261-70, May.
  5. anonymous, 1987. "New Zealand economic chronology 1986," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 50, march.
  6. Wolfgang Mayer, 1984. "The Infant-Export Industry Argument," Canadian Journal of Economics, Canadian Economics Association, vol. 17(2), pages 249-69, May.
  7. Gene M. Grossman & Henrik Horn, 1987. "Infant-Industry Protection Reconsidered: The Case of Informational Barriers to Entry," NBER Working Papers 2159, National Bureau of Economic Research, Inc.
  8. anonymous, 1987. "Review of domestic and external economy," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 50, march.
  9. Lok-sang, Ho, 1987. "Long Run Equilibrium and Macroeconomic Policy," Departmental Working Papers _003, Chinese University of Hong Kong, Department of Economics.
  10. Anonymous, 1987. "Australian Agricultural Economics Society Awards 1986," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(02), August.
  11. repec:inr:wpaper:2649 is not listed on IDEAS
  12. Ross, Marc & Larson, Eric D. & Williams, Robert H., 1987. "Energy demand and materials flows in the economy," Energy, Elsevier, vol. 12(10), pages 953-967.
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