International Harmonization of Product Standards and Firm Heterogeneity in International Trade

As free trade areas have proliferated and statutory tariffs have been dramatically reduced in recent decades, non-tariff barriers (NTBs) to international trade have risen in importance. Destination-specific product standards are one of the major ty...

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Main Author:	Reyes, Jose-Daniel
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCESS TO PRODUCT ACCOUNTING ADMINISTRATIVE RECORDS ARTICLES BIBLIOGRAPHIC DATABASE BINDING BINDINGS BROADCAST CATALOG CLASSIFICATION CLUSTERING CONFIDENTIAL INFORMATION CONSUMER INTERESTS CONSUMERS DATA CENTER DATA RETRIEVAL DEBT DECISION MAKING DECISION MAKING PROCESS DEMAND FUNCTIONS DESCRIPTION DESCRIPTIONS DEVELOPMENT POLICY DISTRIBUTION NETWORKS E-MAIL ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY EMPLOYMENT ENTRY EQUIPMENT EXCHANGE RATES EXPENDITURE EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORTS FIBRE OPTIC FIXED COST FIXED COSTS FREE TRADE GDP GENERAL EQUILIBRIUM HARMONIZATION INCOME INCOME GROUPS INCREASING RETURNS INCREASING RETURNS TO SCALE INFORMATION TECHNOLOGY INFORMATIONS INSTALLATIONS INSTITUTION INSTITUTIONAL CAPACITY INTERNATIONAL BUSINESS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVENTORY LABOR MARKET LABOR PRODUCTIVITY LEVEL OF ADOPTION MAGNETIC TAPES MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COSTS MARKET INFORMATION OPEN ACCESS OWNERSHIP STRUCTURE POLITICAL ECONOMY PRICE INDEX PROBABILITY PRODUCTION COSTS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVITY PROFIT MAXIMIZATION PROTECTIONISM PUBLISHING RADIO RELEVANT MARKET RESEARCHER RESEARCHERS RESULT RESULTS SAFETY SALE SALES SEARCH SEMICONDUCTOR SEMICONDUCTORS STANDARDIZATION SUBSTITUTION SUPPLIER TARIFF BARRIERS TELECOMMUNICATION TELECOMMUNICATION SYSTEMS TELEGRAPH TELEPHONE TELEVISION TERMINOLOGY TOTAL REVENUE TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICY TRADE SYSTEM TRANSACTION TRANSMISSION USER USES UTILITY FUNCTION VIDEO VOCABULARY WAGES WEB WORLD TRADE WORLD TRADE ORGANIZATION WTO
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110606163024 http://hdl.handle.net/10986/3442

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spelling	okr-10986-34422021-04-23T14:02:09Z International Harmonization of Product Standards and Firm Heterogeneity in International Trade Reyes, Jose-Daniel ACCESS TO PRODUCT ACCOUNTING ADMINISTRATIVE RECORDS ARTICLES BIBLIOGRAPHIC DATABASE BINDING BINDINGS BROADCAST CATALOG CLASSIFICATION CLUSTERING CONFIDENTIAL INFORMATION CONSUMER INTERESTS CONSUMERS DATA CENTER DATA RETRIEVAL DEBT DECISION MAKING DECISION MAKING PROCESS DEMAND FUNCTIONS DESCRIPTION DESCRIPTIONS DEVELOPMENT POLICY DISTRIBUTION NETWORKS E-MAIL ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY EMPLOYMENT ENTRY EQUIPMENT EXCHANGE RATES EXPENDITURE EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORTS FIBRE OPTIC FIXED COST FIXED COSTS FREE TRADE GDP GENERAL EQUILIBRIUM HARMONIZATION INCOME INCOME GROUPS INCREASING RETURNS INCREASING RETURNS TO SCALE INFORMATION TECHNOLOGY INFORMATIONS INSTALLATIONS INSTITUTION INSTITUTIONAL CAPACITY INTERNATIONAL BUSINESS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVENTORY LABOR MARKET LABOR PRODUCTIVITY LEVEL OF ADOPTION MAGNETIC TAPES MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COSTS MARKET INFORMATION OPEN ACCESS OWNERSHIP STRUCTURE POLITICAL ECONOMY PRICE INDEX PROBABILITY PRODUCTION COSTS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVITY PROFIT MAXIMIZATION PROTECTIONISM PUBLISHING RADIO RELEVANT MARKET RESEARCHER RESEARCHERS RESULT RESULTS SAFETY SALE SALES SEARCH SEMICONDUCTOR SEMICONDUCTORS STANDARDIZATION SUBSTITUTION SUPPLIER TARIFF BARRIERS TELECOMMUNICATION TELECOMMUNICATION SYSTEMS TELEGRAPH TELEPHONE TELEVISION TERMINOLOGY TOTAL REVENUE TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICY TRADE SYSTEM TRANSACTION TRANSMISSION USER USES UTILITY FUNCTION VIDEO VOCABULARY WAGES WEB WORLD TRADE WORLD TRADE ORGANIZATION WTO As free trade areas have proliferated and statutory tariffs have been dramatically reduced in recent decades, non-tariff barriers (NTBs) to international trade have risen in importance. Destination-specific product standards are one of the major types of NTBs as they impose additional costs on exporters and increase the time required to bring a product to market. This paper examines the response of U.S. manufacturing firms to a reduction of this NTB by looking at the harmonization of European product standards to international norms in the electronics sector. Using a highly detailed dataset that links U.S. international trade transactions to U.S. firms and a new industry-level database of EU product standards, the author finds that harmonization increases U.S. exports to the EU and that this increase is due to more U.S. firms entering the EU market the extensive margin of trade. New entrants to the EU region are drawn mainly from the most productive set of firms already exporting to developing markets before harmonization -the extensive margin of trade composition. These firms are characterized by being smaller and less productive than the firms that were already exporting to the EU before harmonization. Furthermore, harmonization decreases export sales at existing exporters -the intensive margin of trade. These findings are consistent with a model featuring the role of product standards heterogeneity across market destinations and productivity heterogeneity across firms. These results suggest that working toward a harmonization of product rules across markets could be a supportive policy to encourage small and medium size firms' ability to enter new export markets. 2012-03-19T18:02:32Z 2012-03-19T18:02:32Z 2011-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110606163024 http://hdl.handle.net/10986/3442 English Policy Research working paper ; no. WPS 5677 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCESS TO PRODUCT ACCOUNTING ADMINISTRATIVE RECORDS ARTICLES BIBLIOGRAPHIC DATABASE BINDING BINDINGS BROADCAST CATALOG CLASSIFICATION CLUSTERING CONFIDENTIAL INFORMATION CONSUMER INTERESTS CONSUMERS DATA CENTER DATA RETRIEVAL DEBT DECISION MAKING DECISION MAKING PROCESS DEMAND FUNCTIONS DESCRIPTION DESCRIPTIONS DEVELOPMENT POLICY DISTRIBUTION NETWORKS E-MAIL ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY EMPLOYMENT ENTRY EQUIPMENT EXCHANGE RATES EXPENDITURE EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORTS FIBRE OPTIC FIXED COST FIXED COSTS FREE TRADE GDP GENERAL EQUILIBRIUM HARMONIZATION INCOME INCOME GROUPS INCREASING RETURNS INCREASING RETURNS TO SCALE INFORMATION TECHNOLOGY INFORMATIONS INSTALLATIONS INSTITUTION INSTITUTIONAL CAPACITY INTERNATIONAL BUSINESS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVENTORY LABOR MARKET LABOR PRODUCTIVITY LEVEL OF ADOPTION MAGNETIC TAPES MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COSTS MARKET INFORMATION OPEN ACCESS OWNERSHIP STRUCTURE POLITICAL ECONOMY PRICE INDEX PROBABILITY PRODUCTION COSTS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVITY PROFIT MAXIMIZATION PROTECTIONISM PUBLISHING RADIO RELEVANT MARKET RESEARCHER RESEARCHERS RESULT RESULTS SAFETY SALE SALES SEARCH SEMICONDUCTOR SEMICONDUCTORS STANDARDIZATION SUBSTITUTION SUPPLIER TARIFF BARRIERS TELECOMMUNICATION TELECOMMUNICATION SYSTEMS TELEGRAPH TELEPHONE TELEVISION TERMINOLOGY TOTAL REVENUE TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICY TRADE SYSTEM TRANSACTION TRANSMISSION USER USES UTILITY FUNCTION VIDEO VOCABULARY WAGES WEB WORLD TRADE WORLD TRADE ORGANIZATION WTO
spellingShingle	ACCESS TO PRODUCT ACCOUNTING ADMINISTRATIVE RECORDS ARTICLES BIBLIOGRAPHIC DATABASE BINDING BINDINGS BROADCAST CATALOG CLASSIFICATION CLUSTERING CONFIDENTIAL INFORMATION CONSUMER INTERESTS CONSUMERS DATA CENTER DATA RETRIEVAL DEBT DECISION MAKING DECISION MAKING PROCESS DEMAND FUNCTIONS DESCRIPTION DESCRIPTIONS DEVELOPMENT POLICY DISTRIBUTION NETWORKS E-MAIL ECONOMICS ELASTICITY ELASTICITY OF SUBSTITUTION ELECTRICITY EMPLOYMENT ENTRY EQUIPMENT EXCHANGE RATES EXPENDITURE EXPORT GROWTH EXPORT MARKET EXPORT MARKETS EXPORTS FIBRE OPTIC FIXED COST FIXED COSTS FREE TRADE GDP GENERAL EQUILIBRIUM HARMONIZATION INCOME INCOME GROUPS INCREASING RETURNS INCREASING RETURNS TO SCALE INFORMATION TECHNOLOGY INFORMATIONS INSTALLATIONS INSTITUTION INSTITUTIONAL CAPACITY INTERNATIONAL BUSINESS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVENTORY LABOR MARKET LABOR PRODUCTIVITY LEVEL OF ADOPTION MAGNETIC TAPES MANUFACTURING MANUFACTURING INDUSTRIES MARGINAL COSTS MARKET INFORMATION OPEN ACCESS OWNERSHIP STRUCTURE POLITICAL ECONOMY PRICE INDEX PROBABILITY PRODUCTION COSTS PRODUCTION PROCESS PRODUCTION PROCESSES PRODUCTIVITY PROFIT MAXIMIZATION PROTECTIONISM PUBLISHING RADIO RELEVANT MARKET RESEARCHER RESEARCHERS RESULT RESULTS SAFETY SALE SALES SEARCH SEMICONDUCTOR SEMICONDUCTORS STANDARDIZATION SUBSTITUTION SUPPLIER TARIFF BARRIERS TELECOMMUNICATION TELECOMMUNICATION SYSTEMS TELEGRAPH TELEPHONE TELEVISION TERMINOLOGY TOTAL REVENUE TRADE BARRIERS TRADE LIBERALIZATION TRADE POLICY TRADE SYSTEM TRANSACTION TRANSMISSION USER USES UTILITY FUNCTION VIDEO VOCABULARY WAGES WEB WORLD TRADE WORLD TRADE ORGANIZATION WTO Reyes, Jose-Daniel International Harmonization of Product Standards and Firm Heterogeneity in International Trade
geographic_facet	The World Region The World Region
relation	Policy Research working paper ; no. WPS 5677
description	As free trade areas have proliferated and statutory tariffs have been dramatically reduced in recent decades, non-tariff barriers (NTBs) to international trade have risen in importance. Destination-specific product standards are one of the major types of NTBs as they impose additional costs on exporters and increase the time required to bring a product to market. This paper examines the response of U.S. manufacturing firms to a reduction of this NTB by looking at the harmonization of European product standards to international norms in the electronics sector. Using a highly detailed dataset that links U.S. international trade transactions to U.S. firms and a new industry-level database of EU product standards, the author finds that harmonization increases U.S. exports to the EU and that this increase is due to more U.S. firms entering the EU market the extensive margin of trade. New entrants to the EU region are drawn mainly from the most productive set of firms already exporting to developing markets before harmonization -the extensive margin of trade composition. These firms are characterized by being smaller and less productive than the firms that were already exporting to the EU before harmonization. Furthermore, harmonization decreases export sales at existing exporters -the intensive margin of trade. These findings are consistent with a model featuring the role of product standards heterogeneity across market destinations and productivity heterogeneity across firms. These results suggest that working toward a harmonization of product rules across markets could be a supportive policy to encourage small and medium size firms' ability to enter new export markets.
format	Publications & Research :: Policy Research Working Paper
author	Reyes, Jose-Daniel
author_facet	Reyes, Jose-Daniel
author_sort	Reyes, Jose-Daniel
title	International Harmonization of Product Standards and Firm Heterogeneity in International Trade
title_short	International Harmonization of Product Standards and Firm Heterogeneity in International Trade
title_full	International Harmonization of Product Standards and Firm Heterogeneity in International Trade
title_fullStr	International Harmonization of Product Standards and Firm Heterogeneity in International Trade
title_full_unstemmed	International Harmonization of Product Standards and Firm Heterogeneity in International Trade
title_sort	international harmonization of product standards and firm heterogeneity in international trade
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110606163024 http://hdl.handle.net/10986/3442
_version_	1764387004587442176

International Harmonization of Product Standards and Firm Heterogeneity in International Trade

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