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Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector

Daniele Curzi, Valentina Raimondi () and Alessandro Olper ()

No 182756, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: This paper analyzes the extent to which the reduction of import tariffs ‒ as a measure of import competition ‒ affects the quality upgrading of the food products exported to the EU. This relationship is studied within a ‘distance to the frontier’ model (Aghion et al., 2005) who predicts a non-monotonic relation between competition and innovation. Quality is inferred from trade data using the Khandelwal (2010) method. The results show strong support for the existence of an non-monotonic relationship between competition and quality upgrading, with varieties close to the world frontier more likely to upgrade quality in response to an increase in import competition.

Keywords: International; Relations/Trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-int
Date: 2014-08
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Related works:
Working Paper: Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector (2013) Downloads
Working Paper: Quality Upgrading, Competition and Trade Policy: Evidence from the Agri-Food Sector (2013) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae14:182756

DOI: 10.22004/ag.econ.182756

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