Advanced Search
MyIDEAS: Login to save this paper or follow this series

Diffusion of ISO 9000 Standards and International Trade

Contents:

Author Info

  • Michal Grajek

Abstract

Investigating the link between ISO 9000 standards and bilateral exports, this paper contributes to the literature on standardization and international trade. A debate exists as to how ISO 9000 impacts trade. First, it has been argued that ISO 9000 is a "common language" that lowers information asymmetries between firms, thus allowing more efficient organization of inter-firm trade. Second, ISO 9000 has been criticized as a means of introducing market-entry barriers and a tariff on international trade. To assess the actual impact we estimate a gravity equation for bilateral exports incorporating ISO 9000 adoptions in each country as factors affecting bilateral trade barriers. Endogeneity issues are carefully addressed. To obtain additional insights, we separately estimate an ISO 9000 international diffusion equation. In general, our results support the "common language" hypothesis, i.e., the empirical tests find both domestic and foreign ISO 9000 adoptions to benefit bilateral exports. Moreover, we find evidence for a substitution effect, as ISO 9000 certified firms tend to trade with each other more than with uncertified firms. Consequently, the positive impact of these standards on trade is more pronounced among ISO 9000 abundant countries. ZUSAMMENFASSUNG - (Die Diffusion von ISO 9000 Normen und der Internationale Handel) Das vorliegende Papier ist ein Beitrag zur Literatur über den Zusammenhang zwischen der Standardisierung und dem internationalen Handel, untersucht anhand der Verbindung zwischen der ISO 9000 Normierung und bilateralen Exportumsätzen. Über die Auswirkung von ISO 9000 auf den internationalen Handel existiert eine rege Debatte. Einerseits wurde argumentiert, dass die ISO 9000 Normen eine "gemeinsame Sprache" bilden, die die Informationsasymmetrie zwischen Unternehmen mindert und dadurch einen effizienteren Handel zwischen ihnen gewährt. Andererseits wurde ISO 9000 kritisiert als ein Mittel zur Einführung eines Marktzugangshemmnisses und als eine Steuer auf den internationalen Handel. Um die tatsächliche Auswirkung zu beurteilen, schätzen wir eine Gravitätsgleichung für die bilateralen Exportumsätze, die die nationalen Einführungszahlen von ISO 9000 als Determinanten der beidseitigen Handelshemmnisse berücksichtigt. Die Endogenitätsproblematik wird sorgfältig behandelt. Um zusätzliche Einsichten zu gewinnen, schätzen wir getrennt eine Gleichung der weltweiten Diffusion von ISO 9000. Unsere Ergebnisse bestätigen im Allgemeinen die Hypothese der "gemeinsamen Sprache", d.h. die empirischen Überprüfungen stellen fest, dass sich die inländischen sowie auch die ausländischen Einführungszahlen dieser Normen positiv auf die Exportumsätze der Handelspartner auswirken. Außerdem finden wir Anzeichen eines Substitutionseffektes, da die mit ISO 9000 zertifizierten Unternehmen zu mehr Handel mit anderen zertifizierten Unternehmen neigen als mit nicht zertifizierten Unternehmen. Folglich ist die positive Auswirkung der ISO 9000 Normierung auf den Handel zwischen den Ländern mit einer hohen Normierungsquote stärker ausgeprägt.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://skylla.wz-berlin.de/pdf/2004/ii04-16.pdf
File Function: Full text (original version)
Download Restriction: no

Bibliographic Info

Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number SP II 2004-16.

as in new window
Length: 37 pages
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:wzb:wzebiv:spii2004-16

Contact details of provider:
Postal: Reichpietschufer 50, 10785 Berlin, Germany
Phone: (++49)(30) 25491-441
Fax: (++49)(30) 25491-442
Email:
Web page: http://www.wzb.eu/mp/wiw/default.en.htm
More information through EDIRC

Related research

Keywords: Gravity Model; International Trade; ISO 9000; Adoption of Standards; Network Effects; CompatibilityFlexibility.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. James E. Anderson & Douglas Marcouiller, S.J., 1999. "Insecurity and the Pattern of Trade: An Empirical Investigation," Boston College Working Papers in Economics 418, Boston College Department of Economics, revised 03 Aug 2000.
  2. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  3. Deardorff, A.V., 1995. "Determinants of Bilateral Trade : Does Gravity Work in a Neoclassical World?," Papers 95-05, Michigan - Center for Research on Economic & Social Theory.
  4. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
  5. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  6. Michal Grajek, 2002. "Identification of Network Externalities in Markets for Non-Durables," CIG Working Papers FS IV 02-32, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  7. Glick, Reuven & Rose, Andrew K., 2002. "Does a currency union affect trade? The time-series evidence," European Economic Review, Elsevier, vol. 46(6), pages 1125-1151, June.
  8. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
  9. Swann, Peter & Temple, Paul & Shurmer, Mark, 1996. "Standards and Trade Performance: The UK Experience," Economic Journal, Royal Economic Society, vol. 106(438), pages 1297-1313, September.
  10. Hummels, David & Levinsohn, James, 1995. "Monopolistic Competition and International Trade: Reconsidering the Evidence," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 799-836, August.
  11. Benezech, Daniele & Lambert, Gilles & Lanoux, Blandine & Lerch, Christophe & Loos-Baroin, Jocelyne, 2001. "Completion of knowledge codification: an illustration through the ISO 9000 standards implementation process," Research Policy, Elsevier, vol. 30(9), pages 1395-1407, December.
  12. Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January.
  13. Casella, Alessandra, 1995. "Free Trade and Evolving Standards," CEPR Discussion Papers 1204, C.E.P.R. Discussion Papers.
  14. Docking, Diane Scott & Dowen, Richard J, 1999. "Market Interpretation of ISO 9000 Registration," Journal of Financial Research, Southern Finance Association & Southwestern Finance Association, vol. 22(2), pages 147-60, Summer.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Clougherty, Joseph A. & Grajek, Michal, 2006. "The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 179, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  2. Boys, Kathryn A. & Grant, Jason H., 2009. "ISO 9000 Standards: Implicit Barrier or Trade Facilitation Strategy?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49525, Agricultural and Applied Economics Association.
  3. J. Luis Guasch & Jean-Louis Racine & Isabel Sánchez & Makhtar Diop, 2007. "Quality Systems and Standards for a Competitive Edge," World Bank Publications, The World Bank, number 6768, October.
  4. Boys, Kathryn A. & Grant, Jason H., 2010. "Iso 14000 Standards: Voluntary Environmental Governance As A Trade Facilitation Strategy?," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61855, Agricultural and Applied Economics Association.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wzb:wzebiv:spii2004-16. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jennifer Rontganger).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.