ENTRY INTO EXPORT MARKETS AND QUALITY CERTIFICATIONS: EVIDENCE FROM DEVELOPING COUNTRIES

Prosper Bangwayo-Skeete and Winston R. Moore

Applied Econometrics and International Development, 2015, vol. 15, issue 2, 17-34

Abstract: This paper investigates whether internationally recognized quality certifications can facilitate firms in developing countries to penetrate the export markets, a typical challenge owing mainly to information asymmetries on product quality. Applying a multi-level regression approach that controls for endogeneity to the 2006-2013 firm-level and national-level data for 111 developing countries primarily from the World Bank Enterprise Survey, results indicated that adopting ISO certifications enable firms in developing nations to enter foreign markets. This underscores the importance of policymakers in developing countries to encourage their domestic firms to acquire internationally recognized certificates for both the firm’s and the nation’s growth.

Keywords: quality certifications; export decision; developing countries; multilevel modelling; ISO certifications. (search for similar items in EconPapers)
JEL-codes: C25 D21 D82 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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