Institutions, Trade Policy and Trade Flows

Marion Jansen and Nordås, Hildegunn Kyvik
Authors registered in the RePEc Author Service: Hildegunn Kyvik Nordås

No 4418, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper analyses to which extent domestic institutions affect trade flows. We use two complementary approaches, one focusing on the size of total trade flows and one focusing on bilateral trade patterns (gravity equation). We also control for two other domestic policy variables: trade policy and domestic infrastructure. We find that the quality of institutions has a positive and significant impact on a country?s level of openness. Domestic tariffs have no statistically significant impact alone, but do affect total trade flows when combined with good institutions. Domestic institutions also have a positive and significant impact on bilateral trade flows, but the parameter of our institution variables is reduced by almost a half and may turn insignificant when the quality of domestic infrastructure is included in the regression.

Keywords: Openness; Bilateral trade flows; Gravity model; Institutional quality (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2004-06
References: Add references at CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
https://cepr.org/publications/DP4418 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:4418

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP4418

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().