No double standards: Quantifying the impact of standard harmonization on trade

A-Tier
Journal: Journal of International Economics
Year: 2022
Volume: 137
Issue: C

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper quantifies a novel channel that contributes to greater trade integration: the release of harmonized, voluntary product standards. Standards define product characteristics that ensure compatibility, quality and consistency. Harmonized standards unify these characteristics across countries and reduce country-specific adaption costs. We create a novel database on cross-country standards and show that harmonized standards have contributed up to 13% of the growth in global trade. We build a heterogeneous firm model where harmonized standards generate scale effects and induce firms to adopt the standard. Firm-level evidence shows that only the largest firms in the top range of the size-distribution increase their export sales. These firms benefit from higher demand, charge higher prices and sell larger volumes.

Technical Details

RePEc Handle
repec:eee:inecon:v:137:y:2022:i:c:s0022199622000514
Journal Field
International
Author Count
2
Added to Database
2026-01-29