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Research Article
Information asymmetries as trade barriers: ISO 9000 increases international commerce
Article first published online: 5 MAR 2009
DOI: 10.1002/pam.20424
© 2009 by the Association for Public Policy Analysis and Management
1520-6688/asset/cover.gif?v=1&s=34a5683810bf955fca6de38ef989911f3cb4c4c5 "Journal of Policy Analysis and Management")
Additional Information
How to Cite
Potoski, M. and Prakash, A. (2009), Information asymmetries as trade barriers: ISO 9000 increases international commerce. Journal of Policy Analysis and Management, 28: 221–238. doi: 10.1002/pam.20424
Publication History
- Issue published online: 6 MAR 2009
- Article first published online: 5 MAR 2009
- Abstract
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- Cited By
Abstract
Spatial, cultural, and linguistic barriers create information asymmetries between buyers and sellers that impede international trade. The International Organization for Standardization's ISO 9000 program is designed to reduce these information asymmetries by providing assurance about the product quality of firms that receive its certification. Based on analyses of a panel of 140 countries from 1994 to 2004, we find that ISO 9000 certification levels are associated with increases in countries' bilateral exports, particularly for developing countries' exports, which may be due to their more severe quality assurance challenges. © 2009 by the Association for Public Policy Analysis and Management.