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Why do OECD-Countries trade more?

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Author Info

  • Henri L.F. de Groot

    ()
    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Gert-Jan Linders

    ()
    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Piet Rietveld

    ()
    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

Ineffective institutions increase transaction costs and reduce trade. This paper shows that differences in the effectiveness of institutions offer an explanation for the tendency of OECD countries to trade disproportionately with each other, and with non-OECD countries.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-092/3.

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Date of creation: 13 Nov 2003
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Handle: RePEc:dgr:uvatin:20030092

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Web page: http://www.tinbergen.nl

Related research

Keywords: bilateral trade; gravity model; institutions; OECD;

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  1. Henri L. F. de Groot & Gert-Jan Linders & Piet Rietveld & Uma Subramanian, 2004. "The Institutional Determinants of Bilateral Trade Patterns," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 57(1), pages 103-123, 02.
  2. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, American Economic Association, vol. 87(2), pages 178-83, May.
  3. Andrew Rose, 2005. "Which International Institutions Promote International Trade?," Review of International Economics, Wiley Blackwell, Wiley Blackwell, vol. 13(4), pages 682-698, 09.
  4. Koukhartchouk, Oxana & Maurel, Mathilde, 2003. "Accession to the WTO and EU Enlargement: What Potential for Trade Increase?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3944, C.E.P.R. Discussion Papers.
  5. James E. Anderson & Douglas Marcouiller, 2002. "Insecurity And The Pattern Of Trade: An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 342-352, May.
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