Does tougher import competition foster product quality upgrading ? / Ana M. Fernandes, Caroline Paunov

By: Contributor(s): Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: Policy research working paper ; 4894Publisher: [Washington, D.C] : World Bank, 2009Description: Online-RessourceSubject(s): Additional physical formats: Fernandes, Ana Margarida: Does tougher import competition foster product quality upgrading ? LOC classification:
  • HG3881.5.W57
DOI: DOI: 10.1596/1813-9450-4894Online resources: Additional physical formats: Also available in print.Summary: "Over the past two decades, globalization, and more specifically the increased exposure to competition from low-price producers in China and India, has created a new economic environment for other emerging economies. The most advantageous way for manufacturing firms in those economies to position themselves in domestic and international markets is to offer upgraded and differentiated rather than "mundane" labor-intensive products. This paper investigates whether increased competitive pressure from imports forces firms to improve the quality of their products. The econometric analysis relies on a rich dataset of Chilean manufacturing plants and their products. Product quality is measured with unit values (average prices) and industry-level transport costs are used as an exogenous measure of import competition. The authors find a positive and robust effect of import competition on product quality. This effect is found to be particularly strong for non-exporting plants. The results also show that increased import competition from less advanced economies is the major cause for the positive impact on quality upgrading. The overall evidence points to the benefits of trade openness for product innovation but demonstrates at the same time that competitive pressure alone will not enable local plants to catch up with leading world producers. "--World Bank web sitePPN: PPN: 834962748Package identifier: Produktsigel: ZDB-1-WBA | ZDB-110-WBL
No physical items for this record

Also available in print.

2009. (World Bank eLibrary). Also available in print |2009||||||||||

KIT – The University in the Helmholtz Association                         Home | Impressum | Datenschutz | Barrierefreiheit | KIT