Impacts of Institutional Efficiency on Exports in Developed and Developing Countries

Damares Lopes Afonso, Suzana Quinet de Bastos, Fernando Salgueiro Perobelli and Admir Antonio Betarelli Junior

The International Trade Journal, 2025, vol. 39, issue 6, 575-595

Abstract: This study examines the impact of institutional efficiency on exports of non-manufactured and manufactured goods in developed and developing countries using a gravity model. Results show that institutional efficiency boosts manufactured exports in both groups. It also employs a global computable general equilibrium (CGE) model, GTAP, to assess the broader effects of institutional efficiency on trade, production, growth, and welfare. The study concludes that while improvements in institutional efficiency benefit developing countries, they are insufficient to close the economic gap between the two groups, with gains largely concentrated in developed countries, emphasizing the need for more efforts from developing nations.

Date: 2025
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DOI: 10.1080/08853908.2025.2459607

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