Why do OECD-Countries trade more?

Henri L.F. de Groot (), Gert-Jan M. Linders and Piet Rietveld ()

No 03-092/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: 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, and with non-OECD countries.

Keywords: bilateral trade; gravity model; institutions; OECD (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2003-11-13
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Persistent link: http://EconPapers.repec.org/RePEc:dgr:uvatin:20030092

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