Does Input Sector Liberalization Promote Quality Innovation and Exports?

Rajat Acharyya and Swapnendu Bandyopadhyay(Banerjee)
Authors registered in the RePEc Author Service: Swapnendu Banerjee (Bandyopadhyay)

No 650, Econometric Society 2004 Far Eastern Meetings from Econometric Society

Abstract: This paper examines the relationship between input sector liberalization and product quality innovation and export orientation by a LDC firm given the complementarity between high input quality and high product quality. We show that input sector liberalization per se may not induce quality innovation and outward orientation. In fact in some situations ceteris paribus input sector liberalization may increase the odds in favour of low quality production. We show that total output sector liberalization, or surprisingly, a suitable degree of output sector protection then is needed to be combined with input sector liberalization so that quality innovation is induced.

Keywords: Input sector liberalization; Product quality innovation; Export Orientation. (search for similar items in EconPapers)
JEL-codes: D43 L1 (search for similar items in EconPapers)
Date: 2004-08-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Does input sector liberalization promote quality innovation and exports? (2006)
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