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International standards and international trade: Empirical evidence from ISO 9000 diffusion

Joseph Clougherty () and Michal Grajek

International Journal of Industrial Organization, 2014, vol. 36, issue C, 70-82

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

Keywords: International trade; Standards; Technical trade barriers; ISO 9000; Networks (search for similar items in EconPapers)
JEL-codes: L15 F13 C51 (search for similar items in EconPapers)
Date: 2014
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Related works:
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) Downloads
Working Paper: International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion (2012) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:36:y:2014:i:c:p:70-82

DOI: 10.1016/j.ijindorg.2013.07.005

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