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Collective reputation in trade : evidence from the Chinese dairy industry
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Bai, Jie, Gazze, Ludovica and Wang, Yukun (2021) Collective reputation in trade : evidence from the Chinese dairy industry. Review of Economics and Statistics . doi:10.1162/rest_a_01032 (In Press)
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WRAP-evidence-Chinese-dairy-industry-Gazze-2020.pdf - Accepted Version - Requires a PDF viewer. Download (2593Kb) | Preview |
Official URL: https://doi.org/10.1162/rest_a_01032
Abstract
The existence of collective reputation implies an important externality. Among firms trading internationally, quality shocks about one firms products could affect the demand of other firms from the same origin country. We study such reputation spillover in the context of a large-scale scandal that affected the Chinese dairy industry in 2008. Leveraging detailed firm-product level administrative data and official quality inspection reports, we document sizable reputation spillovers on uncontaminated firms. We further investigate potential mechanisms that could mediate the strength of collective reputation, including information accuracy, observability of the supply chain and prior export experience.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory |
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| Divisions: | Faculty of Social Sciences > Economics | ||||||||
| Library of Congress Subject Headings (LCSH): | Reputation -- Economic aspects -- China -- Econometric models, Dairy products industry -- Economic aspects -- China -- Econometric models, Exports -- China -- Psychological aspects -- Econometric models, Scandals -- Economic aspects -- Econometric models, Reputation -- Economic aspects -- Econometric models | ||||||||
| Journal or Publication Title: | Review of Economics and Statistics | ||||||||
| Publisher: | MIT Press | ||||||||
| ISSN: | 0034-6535 | ||||||||
| Official Date: | 2021 | ||||||||
| Dates: |
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| DOI: | 10.1162/rest_a_01032 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | In Press | ||||||||
| Publisher Statement: | This is the author’s final version, and that the article has been accepted for publication in Review of Economics and Statistics | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Copyright Holders: | © 2021 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology | ||||||||
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