Trade-Inducing Quality Standards for Used Durables

Sofronis Clerides and Costas Hadjiyiannis ()

University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics

Abstract: We construct a theoretical framework to study the impact of asymmetric quality standards on used durable goods on trade flows, profits and consumer welfare. We show that asymmetry in quality standards generates trade in used goods from high to low standard countries while at the same time reducing trade in new goods. The industry in the exporting country benefits from this change while consumers lose out. Consumers in the importing country are the biggest beneficiaries, but domestic industry is hurt. These results suggest that quality standards on used goods are a powerful policy tool whose use should be monitored by the WTO.

Keywords: quality standards; durable goods; used durables; trade in used goods (search for similar items in EconPapers)
Pages: 27 pages
Date: 2004-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://papers.econ.ucy.ac.cy/RePEc/papers/5-2004.pdf (application/pdf)

Related works:
Working Paper: Trade-Inducing Quality Standards for Used Durables (2005)
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:ucy:cypeua:5-2004

Access Statistics for this paper

More papers in University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics
Bibliographic data for series maintained by ().