Standardization as institutional infrastructure: evidence from supply chain efficiency

We exploit China’s staggered logistics standardization pilot programme as a quasi-natural experiment to estimate the causal effect of standardization on firm-level supply chain efficiency. Using A-share listed firms over 2007–2023 and a staggered difference-in-differences design, we find that the pilot improves supply chain efficiency by approximately 5.7%, operating through reductions in administrative, sales, and financial cost ratios that lower total transaction costs by 1.73% points. AI investment exhibits significant complementarity with standardization. These efficiency gains translate into higher market valuations, stronger growth, and improved total factor productivity.