1 option
Product Standards, Harmonization, and Trade : Evidence From the Extensive Margin / Shepherd, Ben
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Shepherd, Ben
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- CDI.
- Communities & Human Settlements.
- DIO.
- Economic Development.
- Housing and Human Habitats.
- ID.
- International Bank.
- International Standards.
- JA.
- MT.
- RCD.
- Trade Facilitation.
- Local Subjects:
- CDI.
- Communities & Human Settlements.
- DIO.
- Economic Development.
- Housing and Human Habitats.
- ID.
- International Bank.
- International Standards.
- JA.
- MT.
- RCD.
- Trade Facilitation.
- Physical Description:
- 1 online resource (34 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2007
- System Details:
- data file
- Summary:
- The author uses a new database of EU product standards in the textiles, clothing, and footwear sectors to present the first empirical evidence that international standards harmonization is associated with increased partner country export variety. A 10 percentage point increase in the proportion of internationally harmonized standards is associated with a 0.2 percent increase in partner country export variety, whereas a 10 percent increase in the total number of standards is associated with a nearly 6 percent decrease in product variety. Although small, the harmonization elasticity is statistically significant, and proves highly robust to sample changes and instrumental variables estimation using instruments motivated by political economy considerations. Moreover, it is found to be around 50 percent higher for low income countries, which suggests that they may be particularly constrained in adapting products to meet multiple standards. Numerical simulations show that these findings are consistent with a heterogeneous firms model of trade in which harmonization is beneficial at the extensive margin provided that any increases in compliance costs are not too large.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.