Quality, Efficiency Premia, and Development
LICOS Discussion Paper No. 184/2007
39 Pages Posted: 17 Mar 2008
Date Written: October 2007
Abstract
Improving quality is an important element of the transfer of production to low wage countries. Higher quality requirements are part of complex contracting arrangements in global supply chains. This paper analyzes how weak contract enforcement institutions and imperfect factor markets are affecting contracting for quality products; what the implications are for growth and equity; and how this changes with development.
Keywords: contract production, enforcement, development, rent distribution
JEL Classification: C78, D23, O12, Q12
Suggested Citation: Suggested Citation
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