International Standards Certification and Firms’ Performance: A Study of Three West African Countries

ABSTRACT This article examines the impact of international standards certification on firms’ performance using the 2009 and 2016 World Bank Enterprise Surveys panel datasets from three countries of the West African Economic and Monetary Union (WAEMU). Results from panel data estimation techniques and propensity score matching show that the adoption of international certifications positively affects firms’ performance measured as the average annual growth of sales. The study suggests that the increase in firms’ productivity, cost performance, and direct exports are possible mechanisms through which international standards certification enhances sales growth. Similarly, standards adoption increases foreign participation and alleviates credit constraints, thus, highlighting the signaling effect of certifications.