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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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    References listed on IDEAS

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    Cited by:

    1. 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..
    2. 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.

    More about this item

    Keywords

    ontrol Function; international standards; international trade; self-selection;

    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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