ISO 9000: New Form of Protectionism or Common Language in International Trade?

Arbeitspapier

International standards have the potential to both promote and hinder international trade. Yet empirical scholarship on the standards-trade relationship has been held up due to some methodological challenges: measurement problems, varied effects, and endogeneity concerns. We are able to surmount these challenges while considering the impact of one particular standard on the country-pair trade flows between 91 nations over the 1995-2005 period. To deal with these challenges, we measure the degree of standardization via the penetration of ISO 9000 in individual nations, allow ISO diffusion to manifest via multiple (quality-signaling, information/compliance-cost, and common-language) effects, and use instrumental variable and panel data techniques to overcome endogeneity concerns. We find strong evidence in support of ISO 9000 involving a common-language effect that enhances country-pair trade; yet, the evidence is more mixed with regard to the quality-signaling and information/compliance-cost effects. While we find ISO-rich nations (most notably European) to clearly benefit from the worldwide diffusion of standardization, ISO 9000 represents a de facto trade barrier for nations (e.g., the US and Mexico) lagging behind in terms of adoption.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ESMT Working Paper ; No. 09-006

Classification and Topics

• Classification: Management ; Trade Policy; International Trade Organizations ; Information and Product Quality; Standardization and Compatibility ; Model Construction and Estimation
• Subject: international trade ; standards ; technical trade barriers ; ISO 9000 ; networks ; Standardisierung ; Handelshemmnisse ; Protektionismus ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Clougherty, Joseph A. ; Grajek, Michał
• Event: Veröffentlichung
• (who): European School of Management and Technology (ESMT)
• (where): Berlin
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/96573
• URN: urn:nbn:de:101:1-201106143622
• Last update: 10.03.2025, 11:42 AM CET