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International Spillovers Of Quality Regulations

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  • Luca Macedoni
  • Ariel Weinberger

Abstract

This article investigates the international spillover effects of nondiscriminatory product regulations, for example, quality standards, in a multicountry general equilibrium framework with firm heterogeneity. In the presence of variable markups, when regulations are applied as a fixed cost consistent with stylized facts, they generate a positive spillover on the rest of the world as they induce entry of high‐quality firms and improve the terms of trade of the nonimposing countries. The benefits of such regulations are not fully realized under noncooperative policy settings, rationalizing international cooperation. We estimate our model to quantify the effects of regulations on various welfare‐relevant outcomes.

Suggested Citation

  • Luca Macedoni & Ariel Weinberger, 2025. "International Spillovers Of Quality Regulations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 66(1), pages 453-484, February.
    • Handle: RePEc:wly:iecrev:v:66:y:2025:i:1:p:453-484
    DOI: 10.1111/iere.12736
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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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