Product standards and firms? export decisions

Ana Margarida Fernandes, Esteban Ferro, John S. Wilson, Ana Margarida Fernandes, Esteban Ferro and John S. Wilson
Authors registered in the RePEc Author Service: Ana Margarida Fernandes (), John Sullivan Wilson and Esteban Ferro

No 7315, Policy Research Working Paper Series from The World Bank

Abstract: The paper estimates the effect of product standards on firms? export decisions using two novel datasets. The first covers all exporting firms in 42 developing countries. The second covers pesticide standards for 243 agricultural and food products in 63 importing countries over 2006?12. The analysis shows that product standards significantly affect foreign market access. More restrictive standards in the importing country, relative to the exporting country, lower firms? probability of exporting as well as their export values and quantities. The relative restrictiveness of standards also deters exporting firms from entering new markets and leads to higher exit rates from those markets. Moreover, firm characteristics mediate the effect of product standards on firms? export decisions. Smaller exporters are more negatively affected in their market entry and exit decisions by the relative stringency of standards than larger exporters. Positive network effects of exporters from the same country may help reduce the burden of importing countries? standards on firms? decisions to enter new markets.

Keywords: International Trade and Trade Rules; Pest Management; Legal Reform; Social Policy; Legislation; Foreign Trade Promotion and Regulation; Trade Technology and Productivity; Trade Law; Regulatory Regimes; Standards and Technical Regulations; Judicial System Reform; Legal Products; Trade and Standards; Pulp&Paper Industry; Common Carriers Industry; Plastics&Rubber Industry; Food&Beverage Industry; Textiles; Apparel&Leather Industry; Business Cycles and Stabilization Policies; Construction Industry; General Manufacturing (search for similar items in EconPapers)
Date: 2015-06-18
New Economics Papers: this item is included in nep-bec, nep-cse and nep-int
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Citations: View citations in EconPapers (19)

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Related works:
Journal Article: Product Standards and Firms’ Export Decisions (2019)
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