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International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion

In: Standards, Patents and Innovations

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  • Joseph A. Clougherty
  • Michał Grajek

Abstract

Empirical 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 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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Suggested Citation

  • Joseph A. Clougherty & Michał Grajek, 2012. "International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion," NBER Chapters, in: Standards, Patents and Innovations, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberch:13209
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    2. Patricia AUGIER & Olivier CADOT & Marion DOVIS, 2016. "Regulatory harmonization, profits, and productivity: Firm-level evidence from Morocco," Working Papers P162, FERDI.
    3. Nathalia Granja & Pedro Domingues & Mónica Cabecinhas & Dominik Zimon & Paulo Sampaio, 2021. "ISO 22000 Certification: Diffusion in Europe," Resources, MDPI, vol. 10(10), pages 1-16, September.
    4. Yujuan Guo & Abe P. L. Jong & Andy C. L. Yeung, 2018. "Quality management and international trade: institutionalization of quality standards and performance outcomes in China," Journal of Shipping and Trade, Springer, vol. 3(1), pages 1-10, December.
    5. Borsky, Stefan & Leiter, Andrea Maria, 2022. "International trade in rough diamonds and the Kimberley Process Certification Scheme," World Development, Elsevier, vol. 152(C).
    6. Hezekiah Agwara & Philip Auerswald & Brian Higginbotham, 2014. "Algorithms and the Changing Frontier," NBER Working Papers 20039, National Bureau of Economic Research, Inc.
    7. Victoria Golikova & Boris Kuznetsov, 2014. "Do Russian Firms Need ISO Certification for Exporting?," ERSA conference papers ersa14p1721, European Regional Science Association.
    8. Keith E. Maskus & Tsunehiro Otsuki & John S. Wilson, 2013. "Do foreign product standards matter? Impacts on costs for developing country exporters," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 20(1), pages 37-57, March.
    9. Blind, Knut & Mangelsdorf, Axel & Pohlisch, Jakob, 2018. "The effects of cooperation in accreditation on international trade: Empirical evidence on ISO 9000 certifications," International Journal of Production Economics, Elsevier, vol. 198(C), pages 50-59.
    10. Clougherty, Joseph A. & Grajek, Michal & Shy, Oz, 2016. "Taking 'Some' of the Mimicry Out of the Adoption Process: Quality-Management and Strategic Substitution," CEPR Discussion Papers 11661, C.E.P.R. Discussion Papers.
    11. Joseph A. Clougherty & Michał Grajek, 2022. "Decertification in quality-management standards by incrementally and radically innovative organizations," ESMT Research Working Papers ESMT-22-04, ESMT European School of Management and Technology.
    12. Hezekiah Agwara & Philip Auerswald & Brian Higginbotham, 2013. "Algorithms and the Changing Frontier," NBER Chapters, in: The Changing Frontier: Rethinking Science and Innovation Policy, pages 371-410, National Bureau of Economic Research, Inc.
    13. Abdoul G. Sam & Danbee Song, 2022. "Corporate environmentalism and international trade: Evidence from industry‐level data," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1440-1455, September.
    14. Knut Blind & Maximilian Laer, 2022. "Paving the path: drivers of standardization participation at ISO," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1115-1134, August.
    15. Hottenrott, Moritz & Thorwarth, Susanne & Wey, Christian, 2016. "Gegenstandsbereiche der Normung," DICE Ordnungspolitische Perspektiven 83, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    16. Sungida Rashid, 2021. "Do manufacturing firms in Bangladesh acquire ISO certificates to offset the handicap of credit constraints?," SN Business & Economics, Springer, vol. 1(1), pages 1-15, January.

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    More about this item

    JEL classification:

    • 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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