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The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis

Author

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  • 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. ZUSAMMENFASSUNG - (Der Einfluss der Verbreitung des ISO 9000 Standards auf Außenhandel und ausländische Direktinvestitionen: eine neue institutionelle Analyse) Die Folgen der Verbreitung des ISO 9000 Standards auf den Außenhandel und ausländische Direktinvestitionen wurden bislang noch nicht ausreichend untersucht. In diesem Papier werden Datensätze von OECD-Mitgliedsstaaten im Zeitraum von 1995 - 2002 verwendet, um die Auswirkung von ISO-Einführungen auf bilaterale Außenhandelsaktivitäten zu untersuchen. Es zeigt sich, dass die Anwendung der ISO-Norm keine Auswirkungen auf den Handel zwischen entwickelten Ländern hat. In Entwicklungsländern dagegen führt die Einführung der ISO 9000 Norm dazu, dass die ins Land geholten ausländischen Direktinvestitionen (FDI) steigen und dass der Außenhandel - messbar an der Steigerung des Exportvolumens - positiv beeinflusst wird.

Suggested Citation

  • Joseph A. Clougherty & Michal Grajek, 2006. "The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis," CIG Working Papers SP II 2006-22, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    • Handle: RePEc:wzb:wzebiv:spii2006-22
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    More about this item

    Keywords

    FDI; Trade; Transaction Costs; Institutions;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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