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Entry Into Export Markets And Quality Certifications: Evidence From Developing Countries

Author

Listed:
  • Prosper F. BANGWAYO-SKEETE
  • Winston R. MOORE

Abstract

This paper investigates whether internationally recognized quality certifications can facilitate firms in developing countries to penetrate the export markets, a typical challenge owing mainly to information asymmetries on product quality. Applying a multi-level regression approach that controls for endogeneity to the 2006-2013 firm-level and national-level data for 111 developing countries primarily from the World Bank Enterprise Survey, results indicated that adopting ISO certifications enable firms in developing nations to enter foreign markets. This underscores the importance of policymakers in developing countries to encourage their domestic firms to acquire internationally recognized certificates for both the firm’s and the nation’s growth.

Suggested Citation

  • Prosper F. BANGWAYO-SKEETE & Winston R. MOORE, 2015. "Entry Into Export Markets And Quality Certifications: Evidence From Developing Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 17-34.
    • Handle: RePEc:eaa:aeinde:v:15:y:2015:i:2_2
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    References listed on IDEAS

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    Cited by:

    1. Filomena Pietrovito, 2020. "The Impact of Credit Constraints on International Quality and Environmental Certifications: Evidence from Survey Data," JRFM, MDPI, vol. 13(12), pages 1-14, December.
    2. Syeda Tamkeen Fatima, 2017. "Globalization and technology adoption: evidence from emerging economies," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(6), pages 724-758, August.

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    More about this item

    Keywords

    quality certifications; export decision; developing countries; multilevel modelling; ISO certifications.;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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