No double standards: Quantifying the impact of standard harmonization on trade

Julia Schmidt () and Walter Steingress

Journal of International Economics, 2022, vol. 137, issue C

Abstract: This paper quantifies a novel channel that contributes to greater trade integration: the release of harmonized, voluntary product standards. Standards define product characteristics that ensure compatibility, quality and consistency. Harmonized standards unify these characteristics across countries and reduce country-specific adaption costs. We create a novel database on cross-country standards and show that harmonized standards have contributed up to 13% of the growth in global trade. We build a heterogeneous firm model where harmonized standards generate scale effects and induce firms to adopt the standard. Firm-level evidence shows that only the largest firms in the top range of the size-distribution increase their export sales. These firms benefit from higher demand, charge higher prices and sell larger volumes.

Keywords: International trade; Standardization; Harmonization (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 L15 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Related works:
Working Paper: No Double Standards: Quantifying the Impact of Standard Harmonization on Trade (2019)
Working Paper: No double standards: quantifying the impact of standard harmonization on trade (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:137:y:2022:i:c:s0022199622000514

DOI: 10.1016/j.jinteco.2022.103619

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