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

Maria Cipollina, Federica Demaria and Filomena Pietrovito
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Filomena Pietrovito: UNIMOL - Università degli Studi del Molise = University of Molise

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Abstract: 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.

Keywords: gravity model; trade flows; trade policies; non-tariff measures; innovation (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-cse, nep-ino, nep-int and nep-tid
Note: View the original document on HAL open archive server: https://hal.science/hal-01259114v2
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Published in [University works] auto-saisine. 2015, 27 p

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Related works:
Journal Article: Determinants of Trade: the Role of Innovation in Presence of Quality Standards (2016)
Working Paper: Determinants of trade: the role of innovation in presence of quality standards (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01259114

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