Article ID Journal Published Year Pages File Type
5084280 International Review of Economics & Finance 2006 20 Pages PDF
Abstract
This paper examines the relationship between input sector liberalization and product quality innovation and export orientation by a LDC firm given the complementarity between high input quality and high product quality. We show that input sector liberalization per se may not induce quality innovation and outward orientation. In fact, in some situations, ceteris paribus input sector liberalization may increase the odds in favour of low-quality production. We show that total output sector liberalization, or surprisingly, a suitable degree of output sector protection is needed to be combined with input sector liberalization so that quality innovation is induced.
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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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