Quality Upgrading, Trade, and Market Structure in Food Processing Industries

In this paper the heterogeneous firms and trade literature is extended by integrating quality of inputs and outputs in a food and agricultural setting, along with an analysis of how the ability to translate capability into higher product quality is critical in evaluating the cut-offs for food processing firms to enter domestic and export markets. Specifically, it is found that the direction of change in the domestic market cut-off, due to an increased ability to raise quality, is sensitive to key parameters of the capability distribution; while for the export market cut-off the direction of change depends on the fixed costs of entry into and rents from exporting. These hypotheses are then tested for using panel data for Chilean food processors.


Issue Date:
2015-12
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/229237
Total Pages:
46
JEL Codes:
F12; F61; L66




 Record created 2017-04-01, last modified 2017-08-28

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