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

Dani Rodrik

No 2722, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

Date: 1988-09
Note: ITI IFM
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Published as M. Alasdair Smith and Paul R. Krugman, editors. Empirical Studies of Strategic Trade Policy. Chicago and London: University of Chicago Press 1994
Published as Industrial Organization and Product Quality: Evidence from South Korean and Taiwanese Exports , Dani Rodrik. in Empirical Studies of Strategic Trade Policy , Krugman and Smith. 1994

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