Effect of International Standards Certification on Firm-Level Exports: An Application of the Control Function Approach

Tsunehiro Otsuki ()

No 11E005, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: Growing number of firms in developing countries have earned certifications such as International Standards Organization (ISO) as it enhances reputation of their company or brand and attract buyers particularly in export market. This study evaluates the effect of international standards certification on firm's export performance in Europe and Central Asia by applying the control function approach with endogenous treatment effect to firm-level data. Certification is found to increase export share in firm's sales by 44.9% on average. The results suggest that ignoring the effect of self-selection of certification leads to a substantial bias in the estimated treatment effect.

Keywords: ontrol Function; international standards; international trade; self-selection (search for similar items in EconPapers)
JEL-codes: C34 F10 L15 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2011-06
New Economics Papers: this item is included in nep-int
References: View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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