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Effect of International Standards Certification on Firm-Level Exports: An Application of the Control Function Approach

Author

Listed:
  • Tsunehiro Otsuki

    (Osaka School of International Public Policy, Osaka University)

Abstract

Growing number of firms in developing countries have earned certifications such as International Standards Organization (ISO) as it enhances reputation of their company or brand and attract buyers particularly in export market. This study evaluates the effect of international standards certification on firm's export performance in Europe and Central Asia by applying the control function approach with endogenous treatment effect to firm-level data. Certification is found to increase export share in firm's sales by 44.9% on average. The results suggest that ignoring the effect of self-selection of certification leads to a substantial bias in the estimated treatment effect.

Suggested Citation

  • Tsunehiro Otsuki, 2011. "Effect of International Standards Certification on Firm-Level Exports: An Application of the Control Function Approach," OSIPP Discussion Paper 11E005, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:11e005
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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2011/DP2011E005.pdf
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    Citations

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    Cited by:

    1. Cristina Robledo-Ardila & Alejandro Londoño Avila, 2014. "International standard certifications and export performance of top four Colombian banana exporters," Revista Ciencias Estratégicas, Universidad Pontificia Bolivariana, April.
    2. Giorgio Barba Navaretti & Giulia Felice & Emanuele Forlani & Paolo Garella, 2018. "Non-tariff measures and competitiveness," Development Working Papers 438, Centro Studi Luca d'Agliano, University of Milano, revised 01 Feb 2023.
    3. 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.
    4. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    5. Schuster, Monica & Maertens, Miet, 2015. "The Impact of Private Food Standards on Developing Countries’ Export Performance: An Analysis of Asparagus Firms in Peru," World Development, Elsevier, vol. 66(C), pages 208-221.
    6. Schuster, Monica & Maertens, Miet, 2013. "Food Standards, Heterogeneous Firms and Developing Countries’ Export Performance," Working Papers 152084, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    7. Neda Trifković, 2016. "Private standards and labour productivity in the food sector in Vietnam," WIDER Working Paper Series wp-2016-163, World Institute for Development Economic Research (UNU-WIDER).
    8. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    9. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    10. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    11. Katsushi S. Imai & Md. Faruq Hasan & Eleonora Porreca, 2015. "Do Agricultural Extension Programmes Reduce Poverty and Vulnerability? Farm Size, Agricultural Productivity and Poverty in Uganda," Discussion Paper Series DP2015-06, Research Institute for Economics & Business Administration, Kobe University.
    12. Neda Trifkovic, 2024. "Certifiable management standards, labor productivity, and worker wages: Evidence from the food sector in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 161-184, January.

    More about this item

    Keywords

    ontrol Function; international standards; international trade; self-selection;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • F10 - International Economics - - Trade - - - General
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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