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Demand for Certification: Theory and Evidence on Modernization of Russian Enterprises

Svetlana Avdasheva ()

VOPROSY ECONOMIKI, 2009, vol. 11

Abstract: The article tries to explain the demand for certification according to international standards in Russian industries. Under asymmetric information about the quality of goods certification by a credible agency can serve as a quality signal that increases demand for the given good and the profit of the supplier. Incentives to certificate products positively depend on the market share of suppliers with certified products. Evidence on modernization of Russian enterprises supports this view. Increase of demand for certification is accelerating, mostly by the successful enterprises involved in deeper restructuring.

Date: 2009
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