Measuring the contribution of product quality to competitiveness: a note on theory and policy

Abstract

In this note estimates are given for the importance of quality as an explanation of the comparative productivity shortfall of Northern Ireland (NI) firms relative to their West German counterparts and the method of estimation is outlined. As highlighted by our ongoing research programme of international matched comparisons of company performance and productivity, this is an aspect which has not been emphasised sufficiently in the literature nor have attempts been made to measure its importance.