scholarly journals Climbing the Rungs of the Quality Ladder: FDI and Domestic Exporters in Romania

2019 ◽  
Author(s):  
Matej Bajgar ◽  
Beata S. Javorcik
Keyword(s):  
Quality Ladder

scholarly journals Economic integration in the quality ladder model

2008 ◽  
Vol 38 (4) ◽  
pp. 849-871
Author(s):  
Eduardo Correia de Souza
Keyword(s):  
International Trade ◽  
Financial Market ◽  
Economic Integration ◽  
Market Integration ◽  
Returns To Scale ◽  
Trade Integration ◽  
Ladder Model ◽  
Financial Market Integration ◽  
Quality Ladder

Here we perform the same kind of "integration experiments" as in Rivera-Batiz and Romer (1991), this time in the context of a "quality ladder model", where international trade integration is not enough to prevent redundancy of R&D efforts. Thus a further kind of integration is analysed: "financial market integration". We adopt as a setup the Simple Schumpeterian Model in Aghion and Howitt (2005), whose innovation technology differs sharply from the ones conceived by Rivera-Batiz and Romer in that it displays decreasing returns to scale.

scholarly journals Climbing the Rungs of the Quality Ladder: FDI and Domestic Exporters in Romania

2020 ◽  
Vol 130 (628) ◽  
pp. 937-955
Author(s):  
Matej Bajgar ◽  
Beata Javorcik
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Positive Relationship ◽  
Host Countries ◽  
Firm Level ◽  
Level Information ◽  
Quality Ladder ◽  
Quality Of Products

Abstract This article argues that inflows of foreign direct investment can facilitate export upgrading in host countries. Using customs data merged with firm-level information for 2005–11, it shows a positive relationship between the quality of products exported by Romanian firms and the presence of multinational enterprises (MNEs) in the upstream (input-supplying) industries. Export quality is also positively related to MNE presence in the downstream (input-sourcing) industries and the same industry, but these relationships are less robust. These conclusions hold both when the product quality is proxied with unit values and when it is estimated following the approach of Khandelwal et al. (2013).

Role of Credit Constraints on Product Quality

2017 ◽  
pp. 151-188
Author(s):  
Fatma Nur Karaman Kabadurmus ◽  
Sajal Lahiri
Keyword(s):  
Interest Rate ◽  
Product Quality ◽  
Credit Constraints ◽  
Business Environment ◽  
Common Interest ◽  
Imperfectly Competitive ◽  
Duopoly Model ◽  
Theoretical Predictions ◽  
Quality Ladder

We analyze firms' investment on R&D in an imperfectly competitive setting. Our focus is on cost asymmetries in a duopoly model. The baseline model setting assumes firms invest in a quality ladder type of R&D process with probabilistic returns and have to borrow both at the innovation stage and the production stage. We find that if the firm is more efficient than the rival, effort on R&D will decrease less upon facing a common interest rate. We test our theoretical predictions using World Bank's Business Environment and Enterprise Performance Surveys (BEEPS, 2002, 2005) for Turkey.

Sign in / Sign up

Export Citation Format

Share Document