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Entry into export markets and quality certifications: evidence from developing countries

March 24 2017 by INKOA
Resource image of the African potato platform

This paper investigates whether internationally recognized quality certifications can facilitate firms in developing countries to penetrate the export markets, a typical challenge owing mainly to information asymmetries on product quality. Applying a multi-level regression approach that controls for endogeneity to the 2006-2013 firmlevel and national-level data for 111 developing countries primarily from the World Bank Enterprise Survey, results indicated that adopting ISO certifications enable firms in developing nations to enter foreign markets. This underscores the importance of policymakers in developing countries to encourage their domestic firms to acquire internationally recognized certificates for both the firm’s and the nation’s growth.

Year: 2015
Document relevant to the topics: Quality management along the seed potato value chain
Document relevant to the regions and countries: EU and Others , Kenya , Rwanda , Tanzania , Uganda
Type of document: Article , Regulation and Standards
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