Export Industry Policy and Reputational Comparative Advantage

Richard Chisik

No 17, Working Papers from Toronto Metropolitan University, Department of Economics

Abstract: Country-of-origin reputations are endogenized in this paper and it is shown that otherwise identical countries can be correctly perceived as differing in their percentage of high-quality producers. These self-fulfilling reputations determine not only the average quality of a country’s exports but also the type of products in which a country specializes. Hence, the pattern of international trade can be determined by this “reputational comparative advantage.” An inferior country-of-origin reputation leads to lower national welfare, therefore, several trade and industrial policies that can improve country-of-origin reputation are examined.

Keywords: Country-of-Origin; Quality Reputations; Statistical Discrimination; Industrial Policy. (search for similar items in EconPapers)
JEL-codes: F12 F13 J71 L15 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2010-08
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Export industry policy and reputational comparative advantage (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:rye:wpaper:wp017

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