Trade and Institutional Inertia

Saeed Rasekhi ()
Additional contact information
Saeed Rasekhi: University of Mazandaran

A chapter in Institutional Inertia, 2024, pp 221-242 from Springer

Abstract: Abstract The importance of institutions and their relationship with macroeconomic variables has attracted the attention of many researchers. The existing literature indicates a significant relationship between institutions and the economic environment, which is strengthened by trade openness. Also, the economic literature shows that the phenomenon of inertia is ambiguous and like a double-edged sword. It also seems that the existence of inertia, especially for developing countries, leads to suboptimal macroeconomic and foreign trade performance. By understanding these conditions, this chapter examines the relationship between foreign trade and institutional inertia. To answer this question while reviewing the literature, a simple theoretical model based on Gartner (Macroeconomics under flexible exchange rates. Harvester Wheatsheaf, New York, 1993) has been used. The findings show that there is a significant relationship between foreign trade and institutional inertia. Accordingly, although institutional change and foreign trade can move independently of each other, if they move together and this issue is addressed by policymakers, it can lead to a stronger relationship between institutions and economic performance.

Keywords: Institutions; Inertia; Foreign trade; Trade policies; Macroeconomic policies (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:spr:conchp:978-3-031-51175-2_10

Ordering information: This item can be ordered from
http://www.springer.com/9783031511752

DOI: 10.1007/978-3-031-51175-2_10

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().