The ISO 9000 Standards Effect on Iran's Trade

ISO 9000 standards, which are the most widespread certification system of International Organization for Standardization organization (ISO), have been established to coordinate national standards at the international level and strengthen the global trade. However, some argue that these standards are merely barrier to the market entry and therefore a tariff on international trade. This study assesses this issue in the case of Iran's trade with its major partners. Using a gravity model, the effect of ISO 9000 on Iran’s bilateral trade with its 15 major commercial partners is analyzed during the period 2000 - 2013. The results of this study show that the ISO 9000 standards improve the trade by creating a common language in commerce and reducing information asymmetry between firms.