Quality Assurance and the Home Market Effect

Ai Ting Goh and Tomasz Michalski

Post-Print from HAL

Abstract: The home market effect is considered as a distinguishing feature of models of trade with increasing returns to scale in production and imperfect competition. However, some empirical studies found the existence of home market effect even in constant returns to scale industries. This paper builds a model of intra‐industry trade based upon quality assurance and shows the existence of the home market effect without increasing returns in the production technology. This throws into question the rationale of empirical studies attempting to validate the increasing returns model of trade based upon testing the existence of the home market effect.

Keywords: Quality Assurance; Home Market Effect (search for similar items in EconPapers)
Date: 2012-05
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Review of International Economics, 2012, 20 (2), pp.237-255. ⟨10.1111/j.1467-9396.2012.01019.x⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Quality Assurance and the Home Market Effect (2012)
Working Paper: Quality Assurance and the Home Market Effect (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00715584

DOI: 10.1111/j.1467-9396.2012.01019.x

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().