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

See all articles by Joseph A. Clougherty

Joseph A. Clougherty

University of Illinois at Urbana-Champaign

Michal Grajek

ESMT European School of Management and Technology

Multiple version iconThere are 2 versions of this paper

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

Clougherty, Joseph A. and Grajek, Michal, The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis (December 2006). WZB-Markets and Politics Working Paper No. SP II 2006-22, Available at SSRN: https://ssrn.com/abstract=957233 or http://dx.doi.org/10.2139/ssrn.957233

Joseph A. Clougherty (Contact Author)

University of Illinois at Urbana-Champaign ( email )

1206 S. Sixth Street
330 Wohlers Hall, MC-706
Champaign, IL 61820
United States

Michal Grajek

ESMT European School of Management and Technology ( email )

Schlossplatz 1
Berlin, 10178
Germany

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