Crisis-Induced Innovation: Quality Upgrading in Chinese Industrial Clusters

Xiangting Hu, Jianqing Ruan and Xiaobo Zhang

The Journal of Law, Economics, and Organization, 2021, vol. 37, issue 3, 571-606

Abstract: Supporting institutions and policies play a key role in facilitating upgrades to product quality among manufacturing firms. However, the emergence of quality-supporting institutions has not been well studied. Based on qualitative and quantitative evidence in Chinese clusters, this paper shows that quality-enhancing institutions and policies often emerge in response to crises, such as consumer boycotts and impositions of export barriers, which can catalyze collective action from entrepreneurs and local governments to improve product quality. (JEL codes: L15; L22; L51; L60).

JEL-codes: L15 L22 L51 L60 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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