Firm Level Determinants of International Certification: Evidence from Ethiopia

This paper investigates a wide range of plausible determinants of international certification (IC) in Ethiopia. While past studies focus on the effect of international laws, the findings of this paper suggest that domestic pressure and firm capability are also equally important. Besides export orientation, we find international connectivity, sources of finance such as credit from local banks or local customers, and manager’s human capital as significant determinants of IC. Once such factors are controlled for, firm size, sector, and nationality of owner, appear not to matter. Furthermore, we find that certification may not necessarily enhance business performance in the short run.