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Ineffective institutions increase transaction costs and reduce trade. This paper shows that differences in the … effectiveness of institutions offer an explanation for the tendency of OECD countries to trade disproportionately with each other …
Persistent link: https://www.econbiz.de/10010324986
This paper studies the effect of institutions on trade flows, using a gravity modelapproach. We start from a standard …-18%. Furthermore, a better quality of formal institutions tends to coincide with moretrade. An increase in regulatory quality of one …
Persistent link: https://www.econbiz.de/10010324988
estimate gravity equations to investigate how trade patterns are affected by variation in the quality of institutions across … countries. The results show that institutions matter most for trade in differentiated goods. This variation in the importance of …
Persistent link: https://www.econbiz.de/10010325354
This paper studies the intangible costs of international trade by extending the basic gravity equation with measures of cultural and institutional distance, and institutional quality. Analyzing a sample of bilateral trade flows between 92 countries in 1999, we find that institutional distance...
Persistent link: https://www.econbiz.de/10010325599