This paper studies the interaction of a minimum quality standard and exports in a vertical product differentiation … firms, a mild minimum quality standard in the home market hinders (supports) exports. The minimum quality standard increases … export market. …

exports. The paper modifies Arkolakisś (2010) model of trade with heterogeneous firms by introducing endogenous quality and … competing theory based on the alternative assumption that quality is exogenous across firms would predict completely opposite …

it takes time for firms to learn how to export. We show that this model without Melitz-type assumptions can account for … do not export. We also find that trade iberalization promotes economic growth and that it has the opposite effect of …