The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis
WZB-Markets and Politics Working Paper No. SP II 2006-22
57 Pages Posted: 16 Jan 2007
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The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis
The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis
Date Written: December 2006
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, Trade, Transaction Costs, Institutions
JEL Classification: C51, F23, L31
Suggested Citation: Suggested Citation