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Industrial organization and product quality : Evidence from South Korean and Taiwanese exports

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  • Industrial organization and product quality
  • Rodric, Dani
  • National Bureau of Economic Research


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Title Industrial organization and product quality
Similar Titles
Sub Title

Evidence from South Korean and Taiwanese exports

Material Type Reports
Author(English)

Rodric, Dani

Publisher

Cambridge:National Bureau of Economic Research

Date 1988-09
Series Title; No NBER Working Paper Series / 2722
Pages 27
Subject Country South Korea(Asia and Pacific)
Taiwan(Asia and Pacific)
Language English
File Type Link
Original Format pdf
Subject Economy < Trade
Industry and Technology < General
Holding National Bureau of Economic Research

Abstract

The central focus of this paper is on the relationship between domestic market structure and export performance. It evaluates the hypothesis that more concentrated industrial sectors can achieve more easily the transition from standardized, labor-intensive manufactures to sophisticated, skillintensive products, as such industries are better able to cope with the inevitable reputational externalities involved in producing high-quality goods for foreign markets. South Korea and Taiwan provide a good test of the theory, as they have sharply different market structures. The results of the empirical analysis provide strong support for the hypothesis.

User Note

This is a revised version of a paper presented at the NBER/CEPR Conference on Strategic Trade Policy, University of Sussex, England, July 8-9, 1988. I ant grateful to conference participants and to Tyler Biggs, Brian Levy, Klaus Lorch, and Ray Vernon for helpful comments. I owe special thanks to Brian Levy who stimulated this research. Excellent research assistance was performed by Tina Poitevien. This research is part of NBER's research program in International Studies. Any opinions expressed are those of the author not those of the National Bureau of Economic Research.