The influence of product quality on export performance: eco-efficient value in South African peach and nectarine fresh exports.

Abstract

This study evaluates the role of quality in influencing export earnings. It argues that different types of product attributes confer different quality features and these features provide diverse consumer value which influence the export product’s market performance. The gravity model is used to regress export earnings against indices measuring product value propositions, as well as economic, demographic, demand and trade regulation indicators. It uses data from South Africa’s fresh peach and nectarine exports and 21 trading partners for the period between 2001 and 2017. The study’s results show that improvements in the delivery of esthetic quality were associated with increases in export earnings. On the other hand, improvements in eco-efficiency (sustainable production and consumption) and the delivery off-season fruit were associated with lower export earnings. The results reiterate the importance of providing consumer value, the provision of communication for any additional environmental quality upgrades and consensus in quality definitions with importing countries.