International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion
AbstractEmpirical scholarship on the standards-trade relationship has been held up due to methodological challenges: measurement, varied effects, and endogeneity. Considering the trade-effects of one particular standard (ISO 9000), we surmount methodological challenges by measuring standardization via national penetration of ISO 9000, allowing standardization to manifest via multiple (quality-signaling, information/compliance-cost, and common-language) channels, and using instrumental variable, multilateral resistance and panel data techniques to overcome endogeneity. We find evidence of common-language and quality-signaling augmenting country-pair trade. Yet, ISO-rich nations (most notably European) benefit the most from standardization, while ISO-poor nations find ISO 9000 to represent a trade barrier due to compliance-cost effects.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9047.
Date of creation: Jul 2012
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Other versions of this item:
- Joseph A. Clougherty & Michal Grajek, 2012. "International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion," NBER Working Papers 18132, National Bureau of Economic Research, Inc.
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
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