International trade in 'quality goods': signalling problems for developing countries

John Hudson and Philip Jones
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Philip Jones: Department of Economics and International Development, University of Bath, Bath, UK, Postal: Department of Economics and International Development, University of Bath, Bath, UK

Journal of International Development, 2003, vol. 15, issue 8, 999-1013

Abstract: Consumers evaluate product quality with information signals such as brand name giving an advantage to established firms over other firms even when introducing a new product. Another signal is 'country of origin' and, as high-income countries focus more heavily on higher quality goods, there is a tendency for consumers to associate quality with a country's income per capita. Thus new firms from developing countries face particular problems in export markets. International standardization offers a potential solution to their problem. However, analysis of the use of ISO 9000 suggests that it is difficult to eliminate the informational asymmetry. Copyright © 2003 John Wiley & Sons, Ltd.

Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:15:y:2003:i:8:p:999-1013

DOI: 10.1002/jid.1029

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