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Minimum Quality Standards and Exports
Laura Birg
出版
SSRN
, 2015
URL
http://books.google.com.hk/books?id=AYIBzwEACAAJ&hl=&source=gbs_api
註釋
This paper studies the interaction of a minimum quality standard and exports in a vertical product differentiation model when firms sell global products. If ex ante quality of foreign firms is lower (higher) than the quality of exporting firms, a mild minimum quality standard in the home market hinders (supports) exports. The minimum quality standard increases quality in both markets. A welfare maximizing minimum quality standard is always lower under trade than under autarky. A Minimum quality standard reduces profits for the exporting firm. It increases domestic welfare, but reduces welfare in the export market.