Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/318197 
Year of Publication: 
2025
Series/Report no.: 
GLO Discussion Paper No. 1611
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
We estimate the impact of international standards certification on the export performance of firms in a developing economy using a unique panel data from Pakistan's textile and apparel sector. To address endogeneity, we implement a novel instrumental variable strategy that leverages the prevalence of certified non-rival firms within the same district as an exogenous source of variation in certification adoption. We find that certification significantly increases the likelihood of exporting by 44 percentage points, raises export volumes by nearly ten times, and boosts annual export growth by 68 percent. We, then, explore the underlying mechanisms and find that certification facilitates product diversification, enhances knowledge networks, promotes both product and process innovation, and yields significant gains in labor productivity. However, certification does not lead to greater product complexity, suggesting that while it results in horizontal expansion and strengthens external linkages, it is not sufficient for vertical upgrading.
Subjects: 
ISO
standards certification
export
technological innovation
productivity
JEL: 
L14
L15
F14
M21
O31
J24
Document Type: 
Working Paper

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