Quality Requirements in Developing Countries
This paper theoretically explores how quality standards imposed by subsidiaries of multinational enterprises on local suppliers in developing countries can influence the local intermediate goods industries: they can trigger the adoption of better techniques and processes, thereby increasing the technological capability of the host country; they can also induce local innovation, a situation described in many case studies of developing countries. However, if a host country is underdeveloped, the presence of multinational firms might not bring any significant changes to the economy.
An, Galina and Puttitanun, Thitima, "Quality Requirements in Developing Countries" (2010). Journal of Economics and Business 62(2): 94-115. Faculty Publications. Paper 38.
Journal of Economics and Business