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: Università degli Studi del Molise

Journal of Industry, Competition and Trade, 2016, vol. 16, issue 4, No 4, 455-475

Abstract: 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 is affected by the exporter’s 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 industries 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 industry-level and on the level of economic development of exporting country.

Keywords: Non-tariff measures; Quality standards; Innovation; Gravity model; Trade flows; F12; F13; F14; O24; O30 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (18)

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Working Paper: Determinants of trade: the role of innovation in presence of quality standards (2015)
Working Paper: Determinants of trade: the role of innovation in presence of quality standards (2015)
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DOI: 10.1007/s10842-016-0234-z

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