Working Paper: CEPR ID: DP6026
Authors: Joseph A. Clougherty; Michal Grajek
Abstract: The effects of ISO 9000 diffusion on trade and FDI have gone understudied. We employ panel data reported by OECD nations over the 1995-2002 period to estimate the impact of ISO adoptions on country-pair economic relations. We find ISO diffusion to have no effect in developed nations, but to positively pull FDI (i.e., enhancing inward FDI) and positively push trade (i.e., enhancing exports) in developing nations.
Keywords: FDI; Institutions; Trade; Transaction Costs
JEL Codes: C51; F23; L31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| ISO 9000 diffusion in developing nations (L15) | exports to developed nations (F10) |
| ISO 9000 diffusion in developing nations (L15) | inward FDI from developed nations (F21) |
| ISO diffusion in developed nations (O19) | trade with developing nations (O19) |
| ISO diffusion in developed nations (O19) | FDI with developing nations (F23) |
| ISO 9000 certification (L15) | transaction costs (D23) |
| ISO 9000 certification (L15) | information asymmetries (D82) |