Determinants of trade: the role of innovation in presence of quality standards

Maria Cipollina, Federica Demaria and F. Pietrovito

Working Papers MoISA from INRA, UMR Moïsa

Abstract: This paper analyses the role that quality standards and innovation play on trade volume, by using a gravity model. The role of innovative activity and quality standards in enhancing trade performance is widely accepted in the literature. However, in this paper, we argue that the net effect of quality standards on trade depends on the producers’ ability to innovate and comply with these requirements. In particular, by using a sample of 60 exporting countries and 57 importing countries, for a wide range of 26 manufacturing industries over the period 1995-2000, we show that the most innovative sectors are more likely to enhance the overall quality of exports, and then gain a competitive advantage. We also find that this effect depends on the level of technology intensity at sector-level and on the level of economic development of exporting country. ....French Abstract : Cet article analyse le rôle que jouent les normes de qualité et d'innovation sur le volume des échanges, en utilisant un modèle de gravité. Le rôle des normes de qualité et des activités innovantes dans l'amélioration de la performance commerciale sont largement reconnues dans la littérature. Toutefois, dans ce document, nous soutenons que l'effet net des normes de qualité sur le commerce dépend de la capacité des producteurs à innover et à se conformer à ces exigences. En particulier, en utilisant un échantillon de 60 pays exportateurs et 57 pays importateurs, pour une large gamme de 26 industries pour la période 1995-2000, nous montrons que les secteurs les plus innovants sont susceptibles d'améliorer la qualité globale des exportations, et ainsi obtenir un avantage concurrentiel. Nous constatons également que cet effet dépend du niveau d'intensité de la technologie au niveau sectoriel et du niveau de développement économique du pays exportateur.

Keywords: NON-TARIFF MEASURES; INNOVATION; GRAVITY MODEL; TRADE POLICIES; TRADE FLOWS; MESURES NON TARIFAIRES; INNOVATION; MODELE DE GRAVITE; POLITIQUES COMMERCIALES; FLUX COMMERCIAUX (search for similar items in EconPapers)
JEL-codes: F12 F13 F14 O24 O30 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-int
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Related works:
Journal Article: Determinants of Trade: the Role of Innovation in Presence of Quality Standards (2016)
Working Paper: Determinants of trade: the role of innovation in presence of quality standards (2015)
Working Paper: Determinants of trade: the role of innovation in presence of quality standards (2015)
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