This paper analyses the role that quality standards and innovation play on trade volume, by using a gravity model. The role of innovative activity and quality standards in enhancing trade performance is widely accepted in the literature. However, in this paper, we argue that the net effect of quality standards on trade is affected by the exporter’s ability to innovate and comply with these requirements. In particular, by using a sample of 60 exporting countries and 57 importing countries, for a wide range of 26 manufacturing industries over the period 1995–2000, we show that the most innovative industries are more likely to enhance the overall quality of exports, and then gain a competitive advantage. We also find that this effect depends on the level of technology intensity at industry-level and on the level of economic development of exporting country.
|Digital Object Identifier (DOI):||http://dx.doi.org/10.1007/s10842-016-0234-z|
|Codice identificativo ISI:||WOS:000413905100004|
|Codice identificativo Scopus:||2-s2.0-84991109034|
|Titolo:||Determinants of Trade: the Role of Innovation in Presence of Quality Standards|
|Appare nelle tipologie:||1.1 Articolo in rivista|