Journal of African Economies Advance Access originally published online on March 15, 2009
Journal of African Economies 2009 18(5):711-744; doi:10.1093/jae/ejp003
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Help or Hindrance? The Impact of Harmonised Standards on African Exports
a Bank of America, Charlotte, NC, USA
b Princeton University, Princeton, NJ 08544, USA
c Development Research Group, World Bank, Washington, DC, USA
* Corresponding author: Ben Shepherd, Niehaus Center for Globalization and Governance, Princeton University, Robertson 442A, Princeton, NJ 08544, USA. E-mail: bashepherd{at}gmail.com
We test the hypothesis that product standards harmonised to de facto international standards are less trade restrictive than ones that are not. To do this, we construct a new database of European Union (EU) product standards. We identify standards that are aligned with International Organisation for Standardisation (ISO) standards (as a proxy for de facto international norms). We use a sample-selection gravity model to examine the impact of EU standards on African textiles and clothing exports, a sector of particular development interest. We find robust evidence that non-harmonised standards reduce African exports of these products. EU standards which are harmonised to ISO standards are less trade restricting. Our results suggest that efforts to promote African exports of manufactures may need to be complemented by measures to reduce the cost impacts of product standards, including international harmonisation. In addition, efforts to harmonise national standards with international norms, including those through the World Trade Organisation Technical Barriers to Trade Agreement, promise concrete benefits through trade expansion.
JEL classification: F13, F15
The findings, interpretations and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors or the countries they represent.