Publication:
On the persistence of leadership or leapfrogging in international trade

Thumbnail Image
Identifiers
URI: https://hdl.handle.net/10016/3683
ISSN: 0965-7576
Files
CABRALES_IER_1997_38_4_CA-ps.pdf (474.91 KB)
Publication date
1997
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Blackwell
Impact
Google Scholar
Export
Research Projects
Organizational Units
Journal Issue
Abstract
When two countries starting from different quality levels (reflecting different conditions on domestic market demands) open to trade, two possible equilibria arise. In the first, the quality leader maintains its position. In the second, leapfrogging occurs. However, the latter is possible only if the initial quality gap is not too wide. Futher, when the risk dominance criterion is used, only the former equilibrium is selected. These results suggest that initial conditions (such as domestic market size or home demand preferences) are important factors in determining relative competitiveness of firms in international markets.
Description
Keywords
Bibliographic citation
International Economic Review. 1997, vol. 38, nº. 4, p. 809-824
Collections
DE - Artículos de Revistas
Economists Online