Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145846
Authors: 
Voßwinkel, Jan
Birg, Laura
Year of Publication: 
2016
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Trade and Exporters E19-V2
Abstract: 
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.
JEL: 
F12
L13
L50
Document Type: 
Conference Paper

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