Industrial plans, export destinations and product quality

Jiemiao Dong, Yinxia Mi and Zhuangxiong Yu

The World Economy, 2022, vol. 45, issue 3, 812-840

Abstract: This paper explores the links between policy support, export destinations and product quality. Depending on the export industry and target destination (policy support, income level), the theories suggest a competing relationship between policy support and high‐income exporting on quality upgrading. Consistent with the notion that policy support only matters when exporting to low‐income destinations, empirical results show that policy support improves exporters’ product quality and mitigates the inefficiency of the quality valuation mechanism when exporting to low‐income countries, but reduces product quality by distorting the quality valuation mechanism when exporting to high‐income countries. These results are robust within different measures of policy support and product quality. Heterogeneity analyses show that the impact of policy support and its relationship with high‐income exporting only held for firms with high extensive margins, while foreign ownership and export duration can mitigate the quality reduction impact caused by policy support for high‐income exporting.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/twec.13169

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: https://EconPapers.repec.org/RePEc:bla:worlde:v:45:y:2022:i:3:p:812-840

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().