Determinants of trade: the role of innovation in presence of quality standards

Maria Cipollina, Federica Demaria and Filomena Pietrovito

No 229548, Working Papers MOISA from Institut National de la recherché Agronomique (INRA), UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, Montpellier, France

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 depends on the producers’ 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 sectors 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 sector-level and on the level of economic development of exporting country.

Keywords: Agricultural and Food Policy; International Development; International Relations/Trade (search for similar items in EconPapers)
Pages: 27
Date: 2015-12
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https://ageconsearch.umn.edu/record/229548/files/2015_DeMaria_WP%20Moisa_6.pdf (application/pdf)

Related works:
Journal Article: Determinants of Trade: the Role of Innovation in Presence of Quality Standards (2016)
Working Paper: Determinants of trade: the role of innovation in presence of quality standards (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:inramo:229548

DOI: 10.22004/ag.econ.229548

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