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International standards certification, institutional voids and exports from developing country firms

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  • Goedhuys, Micheline

    () (UNU-MERIT)

  • Sleuwagen, Leo

    () (MSI, KU Leuven)

Abstract

This paper analyses the impact of International Standards Certification (ISC) on the export participation and the scale of exports of firms based in 89 developing or transition countries. We conceptualise ISC as an endogenous institutional advantage, which bridges institutional voids in the country and helps firms to export. The empirical results show that certified firms are more likely to export, and to export on a larger scale. The impact of ISC runs through two channels: productivity and transaction cost economies. We show that certification plays an important role in bringing down transaction costs in international markets, while also maintaining and raising efficiency. This finding is reinforced by additional evidence, suggesting that ISC matters more for the export participation of domestic firms than for foreign firms and is of greater importance for firms based in countries characterised by severe institutional voids.

Suggested Citation

  • Goedhuys, Micheline & Sleuwagen, Leo, 2016. "International standards certification, institutional voids and exports from developing country firms," MERIT Working Papers 021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2016021
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    Cited by:

    1. Juan Miguel Gallego & Luis H. Gutiérrez, 2017. "Quality Management System and Firm Performance in an Emerging Economy: The Case of Colombian Manufacturing Industries," IDB Publications (Working Papers) 8260, Inter-American Development Bank.
    2. repec:eee:iburev:v:27:y:2018:i:1:p:34-45 is not listed on IDEAS
    3. Elisa Calza & Micheline Goedhuys & Neda Trifkovic, 2017. "Drivers of productivity in Vietnamese SMEs: The role of management standards and innovation," WIDER Working Paper Series 068, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    certification; export performance; institutional voids; transaction costs;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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