Factors affecting the incidence and intensity of standards certification evidence from exporting firms in Pakistan

The first stage results using a probit model show that the likelihood of certification is determined by the sector, the firm’s awareness of trade standards, the level to which the firm’s markets are diversified, external pressure for certification and the firm’s primary export market. [...] In turn, these costs and benefits will be influenced by the resource capacity of the firm, the markets in which it operates and the nature and size of possible target markets. [...] With its exports valued at US$8.6 billion in 2005, Pakistan is one of the largest textile and garment exporters in the world, the bulk of which is to the European Union (EU) and United States (US) (World Bank, 2006 p.32).1 The textile and garment market is highly competitive and price sensitive with large-scale buyers dictating quality specifications and price to their suppliers. [...] For example, in 2005, after an assessment by the European Commission highlighted poor food safety controls in the fish and fisheries product sector, predominantly reflecting weak public oversight, the Pakistani government imposed a ban on fish exports to the EU in order to avoid the imposition of sanctions by the Commission and provide the time needed to make the necessary reforms. [...] The second level of the analysis encompasses the intensity of that certification, denoted by the number of standards.