Dynamic Effects of Institutions on Firm-Level Exports

Bengt Söderlund and Patrik Tingvall

No 184, Ratio Working Papers from The Ratio Institute

Abstract: The gap between theoretically predicted trade patterns and actual trade suggests that our understanding of what shapes trade patterns is incomplete. Institutional barriers may be one factor behind this gap and recent research suggests that institutions are a greater obstacle to trade than are tariffs. Using detailed firm-level data, we analyze how institutional quality in recipient countries affects exports by Swedish firms. Our results suggest that weak institutions hamper exports and that firms that successfully maintain long-term exports do so by starting small and successively increase exports as they learn to know the target market.

Keywords: Exports; Institutions; Firm-level data (search for similar items in EconPapers)
JEL-codes: F23 F55 K00 P48 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2012-02-08
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Journal Article: Dynamic effects of institutions on firm-level exports (2014)
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