Do standards improve the quality of traded products?

Anne‐célia Disdier (), Carl Gaigne and Cristina Herghelegiu
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Anne‐célia Disdier: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Cristina Herghelegiu: European Commission [Brussels]

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Abstract: We examine whether standards raise the quality of traded products. Matching a panel of French firm–product–destination export data with a data set on sanitary and phytosanitary measures and technical barriers to trade, we find that such quality standards enforced on products by destination countries: (i) favour the export probability of high-quality firms provided that their productivity is high enough, (ii) raise the export sales of high-productivity, high-quality firms at the expense of low-productivity and low-quality firms and (iii) increase the quality supplied by firms if their productivity is high enough. We then develop a simple new trade model under uncertainty about product quality in which heterogeneous firms can strategically invest in quality signalling to rationalize these empirical results on quality and selection effects.

Date: 2023-11
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Citations: View citations in EconPapers (1)

Published in Canadian Journal of Economics / Revue Canadienne d'Économique, 2023, 56 (4), pp.1238-1290. ⟨10.1111/caje.12678⟩

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Related works:
Journal Article: Do standards improve the quality of traded products? (2023)
Working Paper: Do standards improve the quality of traded products? (2023)
Working Paper: Do Standards Improve the Quality of Traded Products? (2021)
Working Paper: Do Standards Improve the Quality of Traded Products? (2021)
Working Paper: Do Standards Improve the Quality of Traded Products? (2021)
Working Paper: Do Standards Improve the Quality of Traded Products? (2020)
Working Paper: Do Standards Improve the Quality of Traded Products? (2018)
Working Paper: Do Standards Improve the Quality of Traded Products? (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04379781

DOI: 10.1111/caje.12678

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