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

Joseph Clougherty and Michal Grajek

No 18132, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: C51 F13 L15 (search for similar items in EconPapers)
Date: 2012-06
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (5)

Published as International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion , Joseph A. Clougherty, Michał Grajek. in Standards, Patents and Innovations , Simcoe, Agrawal, and Graham. 2014
Published as Clougherty, Joseph A. & Grajek, Michał, 2014. "International standards and international trade: Empirical evidence from ISO 9000 diffusion," International Journal of Industrial Organization, Elsevier, vol. 36(C), pages 70-82.

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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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