Multinational Corporations and Export Quality

Document Type

Article

Journal/Book Title/Conference

Journal of Economic Behavior and Organization

Volume

65

Publication Date

2008

First Page

147

Last Page

155

Abstract

We investigate the effects of spillovers on quality of exports emanating from investment in product quality by multinational corporations, operating in less developed countries. By using a duopoly set up, we show that under price competition these spillovers enhance the quality of exports by less developed countries. We also show that this result is valid under quantity competition.

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