Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/74914 
Year of Publication: 
2008
Series/Report no.: 
LICOS Discussion Paper No. 199
Publisher: 
Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance, Leuven
Abstract: 
Consumers have increasing demands for product standards. This has important implications for development. This paper develops a firmal theory of the process of the introduction of high product standards in developing countries. The model endogenizes the introduction of high standards. Initial differences in income, the nature of capital constraints and transaction costs, the initial production structure and policies and institutions are shown to affect the likelihood of and the size of the high standards economy. Initial differences in some of these same factors-as well as inter-country differences in the distribution of the sizes of firmers-are also shown to detfirmine which producers are included, and which not.
Document Type: 
Working Paper

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