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The impact of ISO 9000 diffusion on trade and FDI: A new institutional analysis

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Abstract

The effects of ISO 9000 diffusion on trade and foreign direct investment (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.

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Acknowledgements

Michał Grajek gratefully acknowledges financial support from the German Federal Ministry of Education and Research (project 01AK702A). We appreciate the efforts of the special issue co-editors (Witold Henisz and Anand Swaminathan) and substantive conversations with Witold Henisz and Jean-Francois Hennart that helped in the early development of the work. Comments by Derek Kellenberg, Ken Scheve, Harbir Singh, Maurizio Zanardi, and seminar participants at Tanaka Business School/Imperial College, London School of Economics, Nijmegen School of Management, IUI in Stockholm and the Conference on the PE of Regulating MNCs & FDI at Penn State were helpful in further developing the work. Kemal Azun, Jennifer Rontganger, Enno Schröder, and Christopher Xitco provided excellent research assistance. Any errors, however, are our own.

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  1. Wissenschaftszentrum Berlin (WZB), Germany

    Joseph A Clougherty

  2. CEPR, London, UK

    Joseph A Clougherty

  3. ESMT European School of Management and Technology, Berlin, Germany

    Michał Grajek

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  1. Joseph A Clougherty
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Correspondence to Joseph A Clougherty.

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Accepted by Anand Swaminathan, Special Issue Editor and Witold Henisz, Special Issue Editor and Departmental Editor, 31 August 2007. This paper has been with the authors for two revisions.

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Clougherty, J., Grajek, M. The impact of ISO 9000 diffusion on trade and FDI: A new institutional analysis. J Int Bus Stud 39, 613–633 (2008). https://doi.org/10.1057/palgrave.jibs.8400368

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