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Standardization Policy and International Trade

Author

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  • Gandal, Neil
  • Shy, Oz

Abstract

In this paper we examine the incentives for governments to recognize the standards of foreign products. In the case of non-recognition, a foreign firm must incur an additional cost to sell in the local market. In the benchmark case, we assume that governmental policy is limited to either (1) recognizing all foreign standards or (2) not recognizing any standards. We then enrich the model and investigate whether countries can gain by forming blocks (standardization unions) which entail mutual standard recognition among member countries.

Suggested Citation

  • Gandal, Neil & Shy, Oz, 1996. "Standardization Policy and International Trade," Foerder Institute for Economic Research Working Papers 275615, Tel-Aviv University > Foerder Institute for Economic Research.
    • Handle: RePEc:ags:isfiwp:275615
    DOI: 10.22004/ag.econ.275615
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    References listed on IDEAS

    as
    1. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    2. Jensen, Richard & Thursby, Marie, 1996. "Patent Races, Product Standards, and International Competition," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(1), pages 21-49, February.
    3. Boom, Anette, 1995. "Asymmetric International Minimum Quality Standards and Vertical Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 101-119, March.
    4. Corden, W.M., 1984. "The normative theory of international trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 2, pages 63-130, Elsevier.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial Economics; International Relations/Trade;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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