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Trade, Quality Reputations and Commercial Policy

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  • Falvey, Rodney E

Abstract

This paper extends recent developments on the role of firm reputations in markets where product quality is unobservable at the time of purchase to an international trading context. Its primary motivation is to demonstrate the implications of this approach to the problem of quality uncertainty for commercial policy, particularly the role of potential nontariff barriers, such as origin labeling requirements and minimum quality standards. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Falvey, Rodney E, 1989. "Trade, Quality Reputations and Commercial Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(3), pages 607-622, August.
    • Handle: RePEc:ier:iecrev:v:30:y:1989:i:3:p:607-22
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    Cited by:

    1. Beestermöller, Matthias & Disdier, Anne-Célia & Fontagné, Lionel, 2018. "Impact of European food safety border inspections on agri-food exports: Evidence from Chinese firms," China Economic Review, Elsevier, vol. 48(C), pages 66-82.
    2. Luisa Menapace & GianCarlo Moschini, 2012. "Quality certification by geographical indications, trademarks and firm reputation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(4), pages 539-566, September.
    3. McQuade, Timothy & Salant, Stephen W. & Winfree, Jason, 2016. "Markets with untraceable goods of unknown quality: Beyond the small-country case," Journal of International Economics, Elsevier, vol. 100(C), pages 112-119.
    4. Gründler, Klaus & Hillman, Arye L., 2021. "Ambiguous protection," European Journal of Political Economy, Elsevier, vol. 68(C).
    5. Wills, Ian R. & Harris, Jane, 1994. "Government Versus Private Quality Assurance For Australian Food Exports," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 1-16, April.
    6. Jansen, Marion & Lince de Faria, André, 2002. "Product Labelling, Quality and International Trade," CEPR Discussion Papers 3552, C.E.P.R. Discussion Papers.
    7. Bureau, J.-C. & Gozlan, E. & Marette, S., 1999. "Quality Signaling and International Trade in Food Products," Papers 99-13, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
    8. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantification of Sanitary, Phytosanitary, and Technical Barriers to Trade for Trade Policy Analysis," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 01-wp291, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. MacLaren, Donald, 2003. "Consumers’ Preferences, Credence Goods And The Wto Sps Agreement," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57915, Australian Agricultural and Resource Economics Society.
    10. Auriol, Emmanuelle & Schilizzi, Steven G.M., 2003. "Quality Signaling through Certification. Theory and an Application to Agricultural Seed Market," IDEI Working Papers 165, Institut d'Économie Industrielle (IDEI), Toulouse.
    11. Eric Rasmusen, 2007. "A Reputation Model of Quality in North-South Trade," Working Papers 2007-06, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
    12. Dinopoulos, Elias & Livanis, Grigorios T. & West, Carol Taylor, 2005. "How Cool is C.O.O.L.?," Working Papers 15658, University of Florida, International Agricultural Trade and Policy Center.
    13. Luca Macedoni, 2022. "Asymmetric information, quality, and regulations," Review of International Economics, Wiley Blackwell, vol. 30(4), pages 1180-1198, September.
    14. Wolfgang Kerber & Roger Van den Bergh, 2008. "Mutual Recognition Revisited: Misunderstandings, Inconsistencies, and a Suggested Reinterpretation," Kyklos, Wiley Blackwell, vol. 61(3), pages 447-465, August.
    15. Auriol, Emmanuelle & Schilizzi, Steven G.M., 2015. "Quality signaling through certification in developing countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 105-121.
    16. Rasmusen, Eric, 2017. "A model of trust in quality and North–South trade," Research in Economics, Elsevier, vol. 71(1), pages 159-170.
    17. Dalton, John T. & Goksel, Turkmen, 2013. "Reputation and learning: Japanese car exports to the United States," Japan and the World Economy, Elsevier, vol. 25, pages 10-23.
    18. Dimitra Petropoulou, 2013. "Vertical product differentiation, minimum quality standards, and international trade," Oxford Economic Papers, Oxford University Press, vol. 65(2), pages 372-393, April.
    19. Munirul H. Nabin & Xuan Nguyen & Pasquale M. Sgro, 2013. "Technology Transfer, Quality Standards, and North–South Trade," Review of International Economics, Wiley Blackwell, vol. 21(4), pages 783-796, September.
    20. Homi Katrak, 2002. "Economic liberalization and new product enterprises in the newly industrializing countries: an analysis of the Indian experience," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(2), pages 195-206.
    21. Arfini, Filippo & Cernicchiaro, Sabrina & Mancini, Maria Cecilia, 2007. "Private Innovation and Public Innovation: Who Leads and Who Follows?," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6587, International European Forum on System Dynamics and Innovation in Food Networks.
    22. Katrak, Homi, 2002. "Does economic liberalisation endanger indigenous technological developments?: An analysis of the Indian experience," Research Policy, Elsevier, vol. 31(1), pages 19-30, January.
    23. Seok, Jun Ho & Saghaian, Sayed & Reed, Michael R., 2018. "The ‘Signaling Effect’ and the impact of high maximum residue limit standards on U.S. vegetable exports," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 150-159.

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