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The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis

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  • Clougherty, Joseph A.
  • Grajek, Michal

Abstract

The effects of ISO 9000 diffusion on trade and FDI have gone understudied. We employ panel data reported by OECD nations over the 1995-2002 period to estimate the impact of ISO adoptions on country-pair economic relations. We find ISO diffusion to have no effect in developed nations, but to positively pull FDI (i.e., enhancing inward FDI) and positively push trade (i.e., enhancing exports) in developing nations.

Suggested Citation

  • Clougherty, Joseph A. & Grajek, Michal, 2006. "The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis," CEPR Discussion Papers 6026, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:6026
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    Cited by:

    1. Munasib, Abdul B.A. & Roy, Devesh, 2011. "Nontariff Barriers as Bridge to Cross," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125025, International Association of Agricultural Economists.
    2. Clougherty, Joseph A. & Grajek, Michał, 2014. "International standards and international trade: Empirical evidence from ISO 9000 diffusion," International Journal of Industrial Organization, Elsevier, vol. 36(C), pages 70-82.
    3. Stefan Daniel Armeanu & Georgeta Vintila & Stefan Cristian Gherghina, 2017. "A Cross-Country Empirical Study Towards the Impact of Following ISO Management System Standards on Euro-Area Economic Confidence," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(44), pages 144-144, February.
    4. repec:afe:journl:v:19:y:2017:i:1:p:61-83 is not listed on IDEAS
    5. Juan Carlos Hallak & Jagadeesh Sivadasan, 2009. "Firms' Exporting Behavior under Quality Constraints," Working Papers 09-13, Center for Economic Studies, U.S. Census Bureau.
    6. Goedhuys, Micheline & Sleuwaegen, Leo, 2016. "International standards certification, institutional voids and exports from developing country firms," International Business Review, Elsevier, vol. 25(6), pages 1344-1355.
    7. Kwok Tong Soo, 2014. "The gains from trade in intermediate goods," Working Papers 63719205, Lancaster University Management School, Economics Department.
    8. Goedhuys, Micheline & Sleuwaegen, Leo, 2013. "The Impact of International Standards Certification on the Performance of Firms in Less Developed Countries," World Development, Elsevier, vol. 47(C), pages 87-101.
    9. Ueki, Yasushi, 2016. "Customer pressure, customer–manufacturer–supplier relationships, and quality control performance," Journal of Business Research, Elsevier, vol. 69(6), pages 2233-2238.
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    11. Micheline Goedhuys & Pierre Mohnen, 2017. "Management Standard Certification and Firm productivity: Micro-evidence from Africa," Journal of African Development, African Finance and Economic Association, vol. 19(1), pages 61-83.
    12. repec:bla:jomstd:v:54:y:2017:i:3:p:340-365 is not listed on IDEAS
    13. 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.
    14. Joseph A. Clougherty & Michal Grajek, 2009. "ISO 9000: New form of protectionism or common language in international trade?," ESMT Research Working Papers ESMT-09-006, ESMT European School of Management and Technology.
    15. Munasib, Abdul & Roy, Devesh, 2011. "Sanitary and phytosanitary standards as bridge to cross:," IFPRI discussion papers 1140, International Food Policy Research Institute (IFPRI).
    16. Iguchi, Hakaru & Arimura, Toshi H. & Michida, Etsuyo, 2015. "Adoption of ISO9001 through supply chain in Vietnam : impacts of FDI and product-related environmental regulation," IDE Discussion Papers 497, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    17. Ullah, Barkat & Wei, Zuobao & Xie, Feixue, 2014. "ISO certification, financial constraints, and firm performance in Latin American and Caribbean countries," Global Finance Journal, Elsevier, vol. 25(3), pages 203-228.
    18. Hallak, Juan Carlos & Sivadasan, Jagadeesh, 2008. "Productivity, quality and exporting behavior under minimum quality constraints," MPRA Paper 24146, University Library of Munich, Germany.
    19. Zwinkels, Remco C.J. & Beugelsdijk, Sjoerd, 2010. "Gravity equations: Workhorse or Trojan horse in explaining trade and FDI patterns across time and space?," International Business Review, Elsevier, vol. 19(1), pages 102-115, February.
    20. 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.
    21. repec:spr:manint:v:51:y:2011:i:6:d:10.1007_s11575-011-0103-2 is not listed on IDEAS
    22. Hottenrott, Moritz & Thorwarth, Susanne & Wey, Christian, 2016. "Gegenstandsbereiche der Normung," DICE Ordnungspolitische Perspektiven 83, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    23. Ederington,Josh & Ruta,Michele, 2016. "Non-tariff measures and the world trading system," Policy Research Working Paper Series 7661, The World Bank.

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    Keywords

    FDI; institutions; trade; transaction costs;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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