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International standards certification, institutional voids and exports from developing country firms
Goedhuys, Micheline Sleuwaegen, Leo
Goedhuys, Micheline
Sleuwaegen, Leo
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Publication Type
Journal article with impact factor
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Supervisor
Publication Year
2016
Journal
International Business Review
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Publication Volume
25
Publication Issue
6
Publication Begin page
1344
Publication End page
1355
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Abstract
This paper analyses the impact of International Standards Certification (ISC) on the export participation and the scale of exports of firms based in 89 developing or transition countries. We conceptualise ISC as an endogenous institutional advantage, which bridges institutional voids in the country and helps firms to export. The empirical results show that certified firms are more likely to export, and to export on a larger scale. The impact of ISC runs through two channels: productivity and transaction cost economies. We show that certification plays an important role in bringing down transaction costs in international markets, while also maintaining and raising efficiency. This finding is reinforced by additional evidence, suggesting that ISC matters more for the export participation of domestic firms than for foreign firms and is of greater importance for firms based in countries characterised by severe institutional voids.
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Keywords
Certification, Export Performance, Institutional Voids, Transaction Costs