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| Author: | Chisik, R. |
| Title: | Export Industry Policy and Reputational Comparative Advantage |
| Journal: | Journal of International Economics
2003 : MAR, VOL. 59:2, p. 423-451 |
| Index terms: | INDUSTRIAL POLICY REPUTATION COMPARATIVE ADVANTAGE INTERNATIONAL TRADE |
| Language: | eng |
| 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. |
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