Industrial Organization and Product Quality: Evidence from South Korean and Taiwanese Exports, Issue 2722
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, skill intensive 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.
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762.0 Radio receivers actual quality analysis Andrei Shleifer average quality level Brian Levy Bureau of Economic Business Cycle capita compared concentrated industries conglomerates denotes developing countries differential disaggregated discussion distribution of firms Economic Research enterprises entrants EVIDENCE FROM SOUTH Exchange Rate EXPORTS Dani Rodrik Eyeglasses firm's foreign Herfindahl index high-end products high-quality higher quality higher unit values higher-quality home exports household hypothesis Hyundai increasing industrial organization patterns industrial policy industry structure invest in reputation Japanese unit values Korea and Taiwan Korean and Taiwanese Korean unit values Lawrence H linear function low-end manufactured exports Massachusetts Avenue NBER nspf of cast ORGANIZATION AND PRODUCT output patterns of industrial perceived quality product groups product quality quality choice quality q quality range quality spectrum respect to product Ricardian role Samsung South Korea Table Taiwan TAIWANESE EXPORTS Dani Taiwanese unit values Takatoshi Ito trade U.S. import wood veneer