Institutional determinants of export competitiveness among the EU countries: evidence from Bayesian model averaging

Beata Bierut and Piotr Dybka
Additional contact information
Beata Bierut: Narodowy Bank Polski

No 306, NBP Working Papers from Narodowy Bank Polski

Abstract: Although the impact of institutions has been broadly studied in the literature on economic growth, their impact on international trade is less well-established. We aim to fill this gap by creating an extended database that, apart from price and non-price factors traditionally analyzed as determinants of exports, also includes measures of institutional development. Next, we introduce the Bayesian Model Averaging to establish which factors play the most important role for the export performance. Our results show that institutions have two types of effects on exports: a direct positive effect on the overall export performance (e.g. regulation) as well as a transformational impact on the export structure (from less to more technologically advanced exports, e.g. freedom to trade internationally). Our results also confirm that technological factors (e.g. patents) have a much greater impact on export performance than price factors. Moreover, some technological factors only have a significant transformational impact on the export structure (e.g. R&D expenditure). Human capital also seems to have only a transformational, rather than direct, impact on exports.

Keywords: Trade; price competitiveness; technological competitiveness; institutional environment; Bayesian Model Averaging (search for similar items in EconPapers)
JEL-codes: C11 C33 F14 F15 (search for similar items in EconPapers)
Pages: 28
Date: 2019
New Economics Papers: this item is included in nep-cse and nep-int
Note: This paper benefited from discussions with participants of 10th International Conference Economic Challenges in Enlarged Europe in Tallinn and participants of the seminar organised by Financial Markets Modelling Unit at SGH Warsaw School of Economics.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://static.nbp.pl/publikacje/materialy-i-studia/306_en.pdf (application/pdf)

Related works:
Working Paper: Institutional determinants of export competitiveness among the EU countries: evidence from Bayesian model averaging (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpmis:306

Access Statistics for this paper

More papers in NBP Working Papers from Narodowy Bank Polski Contact information at EDIRC.
Bibliographic data for series maintained by Jakub Growiec ().