The Journal of International Trade & Economic Development
In this paper, we describe the relationship between the quality of goods and inputs of the Colombian manufacturing firms and the income level of their export markets. We show that there is a positive correlation between measures of product and input quality and measures of per capita income of export markets. In particular, the results suggest that the taste for quality is correlated with income, and that the quality of manufactured products is correlated with the quality of the inputs used to produce them. These findings are consistent with the recent literature on the demand and supply of quality, and with evidence for other countries.