Asymmetric Country-of-Origin Effects on Intraindustry Trade and the International Quality

Arnab Basu () and Nancy H. Chau ()

Review of Development Economics, 1998, vol. 2, issue 2, pages 140-66

Abstract: A model of North-South intraindustry trade in quality differentiated products is proposed to examine the role of country-of-origin reputation in determining the competitive edge of emerging industries. It is shown that if consumers rationally harbor negative expectations about the quality of Southern products, economic progress in either the North or the South shifts the terms of trade against Southern exports, and worsens Southern producers' incentive to produce high-quality products. In addition, the paper illustrates the role of income redistributive policies in shifting consumer's demand in favor of Southern high-quality products. Copyright 1998 by Blackwell Publishing Ltd

Date: 1998

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=1998&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:rdevec:v:2:y:1998:i:2:p:140-66

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is edited by E. Kwan Choi

More articles in Review of Development Economics from Blackwell Publishing
Series data maintained by Christopher F. Baum ().