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

Joseph Clougherty and Michal Grajek

No 9047, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 (most notably European) benefit the most from standardization, while ISO-poor nations find ISO 9000 to represent a trade barrier due to compliance-cost effects.

Keywords: Networks; Standards; Technical trade barriers (search for similar items in EconPapers)
JEL-codes: C51 F13 L15 (search for similar items in EconPapers)
Date: 2012-07
New Economics Papers: this item is included in nep-net
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: International standards and international trade: Empirical evidence from ISO 9000 diffusion (2014)
Chapter: International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion (2012)
Working Paper: International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion (2012)
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