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Export Industry Policy and Reputational Comparative Advantage

Author

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  • Richard Chisik

    (Department of Economics, Ryerson University, Toronto, Canada)

Abstract

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.

Suggested Citation

  • Richard Chisik, 2010. "Export Industry Policy and Reputational Comparative Advantage," Working Papers 017, Toronto Metropolitan University, Department of Economics.
    • Handle: RePEc:rye:wpaper:wp017
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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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