Institutional quality and trade: which institutions? which trade?

Pierre-Guillaume Méon and Khalid Sekkat

No 06-06.RS, Working Papers DULBEA from Université libre de Bruxelles, Department of Applied Economics (DULBEA)

Abstract: Using a panel of countries over 1920-2000, this paper examines the extent to which different dimensions of the institutional framework affect exports of total, manufactured, and non-manufactured goods. It is observed that exports of manufactured goods are positively affected by the control of corruption, the rule of law, government effectiveness, and the lack of political violence. This result does not hold for non-manufactured and total exports. Instrumental variable regressions finally confirm that the control of corruption, but not the other dimensions of governance, robustly cause manufactured exports.

Keywords: Institutions; governance; trade; manufactured exports; non-manufactured exports. (search for similar items in EconPapers)
JEL-codes: F15 O17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-int and nep-pol
Date: 2006-04
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Related works:
Journal Article: INSTITUTIONAL QUALITY AND TRADE: WHICH INSTITUTIONS? WHICH TRADE? (2008)
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