International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion
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.
You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.
Forthcoming as International Standards and International Trade: Empirical Evidence from ISO 9000 Diffusion, Joseph A. Clougherty, Michał Grajek, in Standards, Patents and Innovations (2014), Elsevier, International Journal of Industrial Organization
Users who downloaded this paper also downloaded these: