Regional Approaches to Better Standards Systems
Regional Approaches to Better Standards Systems

Author: Enrique Aldaz-Carroll

Publisher: World Bank Publications

Published: 2006

Total Pages: 37

ISBN-13:

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"Developing countries face an increasing need to upgrade the standards of their domestic markets and of their exports. This paper examines different approaches available to them for upgrading their standards and conformity assessment procedures. It focuses particularly on those followed within the context of regional trade agreements (RTAs), as these are yielding promising results. Based on interviews performed in Latin America and on previous literature, the paper draws common features of a RTA standard and conformity assessment upgrading and harmonization process, identifies some of its main challenges, and suggests principles that developing countries could follow in such a process."--World Bank web site.

The Cost of Compliance with Product Standards for Firms in Developing Countries
The Cost of Compliance with Product Standards for Firms in Developing Countries

Author: Keith Eugene Maskus

Publisher: World Bank Publications

Published: 2005

Total Pages: 35

ISBN-13:

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Abstract: Standards and technical regulations exist to protect consumer safety or to achieve other goals, such as ensuring the interoperability of telecommunications systems, for example. Standards and technical regulations can, however, raise substantially both start-up and production costs for firms. Maskus, Otsuki, and Wilson develop econometric models to provide the first estimates of the incremental production costs for firms in developing nations in conforming to standards imposed by major importing countries. They use firm-level data generated from 16 developing countries in the World Bank Technical Barriers to Trade (TBT) Survey Database. Their findings indicate that standards do increase short-run production costs by requiring additional inputs of labor and capital. A 1 percent increase in investment to meet compliance costs in importing countries raises variable production costs by between 0.06 and 0.13 percent, a statistically significant increase. The authors also find that the fixed costs of compliance are nontrivial-approximately.

Do Standards Matter for Export Success?
Do Standards Matter for Export Success?

Author: Maggie Xiaoyang Chen

Publisher: World Bank Publications

Published: 2006

Total Pages: 26

ISBN-13:

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Standards and technical regulations are an increasingly prominent part of the international trade policy debate. In particular, there has been considerable discussion of whether standards and regulations affect trade costs and export prospects for developing countries. In this paper the authors examine how meeting foreign standards affects firms' export performance, reflected in export propensity and market diversification. The analysis draws on the World Bank Technical Barriers to Trade Survey database of 619 firms in 17 developing countries. The results indicate that technical regulations in industrial countries adversely affect firms' propensity to export in developing countries. In particular, testing procedures and lengthy inspection procedures reduce exports by 9 percent and 3 percent, respectively. Furthermore, in the model, the difference in standards across foreign countries causes diseconomy of scale for firms and affects decisions about whether to enter export markets. The empirical analysis presented here implies that standards impede exporters' market entry, reducing the likelihood of exporting to more than three markets by 7 percent. In addition, the authors find that firms that outsource components are more challenged by compliance with multiple standards.

Development, Trade, and the WTO
Development, Trade, and the WTO

Author: Bernard M. Hoekman

Publisher: World Bank Publications

Published: 2002

Total Pages: 674

ISBN-13: 9780821349977

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Publisher's description: Developing countries are increasingly confronted with the need to address trade policy related issues in international agreements, most prominently the World Trade Organization (WTO). New WTO negotiations on a broad range of subjects were launched in November 2001. Determining whether and how international trade agreements can support economic development is a major challenge. Stakeholders in developing countries must be informed on the issues and understand how their interests can be pursued through international cooperation. This handbook offers guidance on the design of trade policy reform, surveys key disciplines and the functioning of the World Trade Organization (WTO), and discusses numerous issues and options that confront developing countries in using international cooperation to improve domestic policy and obtain access to export markets. Many of the issues discussed are also relevant in the context of regional integration agreements. Separate sections of the handbook summarize what constitutes sound trade policy; the major aspects of the WTO from a development perspective; policy issues in the area of merchandise trade and the liberalization of international transactions in services; protection of intellectual property rights and economic development; new regulatory subjects that are emerging in the agenda of trade talks; and enhancing participation of developing countries in the global trading system.