The Trade Impact of ISO 9000 Certifications and International Cooperation in Accreditation

While it is widely acknowledged that international standards facilitate trade much less is known about certification requirements and mutually recognition of certification results. In our paper, we examine the impact of ISO 9000 certifications and the multilateral recognition arrangement for international acceptance of ISO 9000 certificates of the International Accreditation Forum (IAF-MLA) on trade in manufacturing goods. Using a gravity model, we find that certification intensity,i.e. the percentage of ISO 9000 certificated establishments in the manufacturing sector,promotes trade. Signatories of the IAF-MLA significantly trade more with each other and the trade enhancing effect has about the same magnitude as regional trade agreements. Our analysis shows that IAF-MLA is most important for exporters from less developed countries aiming to access markets in developed countries. For policy makers, our results show the importance of technical assistance for accreditation services in developing countries.