IDEAS home Printed from https://ideas.repec.org/a/taf/jpolrf/v14y2011i3p243-258.html
   My bibliography  Save this article

Will institutional reform enhance bilateral trade flows? Analyses from different reform aspects

Author

Listed:
  • Apanard Penny Angkinand
  • Eric M.P. Chiu

Abstract

This paper examines the effect of various types of institutional reforms in enhancing bilateral trade flows. We examine three types of institutional reforms -- democratic political system, legal, and administrative reforms -- and distinguish an initial effect from a permanent effect on bilateral trade. Using a panel of 62 countries over 1980--2008, we find that all three types of reforms are important in enhancing bilateral trade flows, but their positive effects are only observed when the reforms are permanent. Our study concludes that permanent improvement in domestic institutions should be an important objective for policy makers to pursue in promoting trade.

Suggested Citation

  • Apanard Penny Angkinand & Eric M.P. Chiu, 2011. "Will institutional reform enhance bilateral trade flows? Analyses from different reform aspects," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 14(3), pages 243-258, September.
  • Handle: RePEc:taf:jpolrf:v:14:y:2011:i:3:p:243-258
    DOI: 10.1080/17487870.2011.576485
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17487870.2011.576485
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nathan Nunn, 2007. "Relationship-Specificity, Incomplete Contracts, and the Pattern of Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 569-600.
    2. Alejandro Micco & Ernesto Stein & Guillermo Ordoñez, 2003. "The currency union effect on trade: early evidence from EMU," Economic Policy, CEPR;CES;MSH, vol. 18(37), pages 315-356, October.
    3. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    4. Subramanian, Arvind & Wei, Shang-Jin, 2007. "The WTO promotes trade, strongly but unevenly," Journal of International Economics, Elsevier, vol. 72(1), pages 151-175, May.
    5. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    6. Jansen, Marion & Nordås, Hildegunn Kyvik, 2004. "Institutions, trade policy and trade flows," WTO Staff Working Papers ERSD-2004-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    8. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
    9. Shimpalee, Pattama L. & Breuer, Janice Boucher, 2006. "Currency crises and institutions," Journal of International Money and Finance, Elsevier, vol. 25(1), pages 125-145, February.
    10. Alejandro Micco & Ernesto H. Stein & Guillermo Luis Ordoñez, 2003. "The Currency Union Effect on Trade: Early Evidence from EMU," Research Department Publications 4339, Inter-American Development Bank, Research Department.
    11. repec:cup:apsrev:v:92:y:1998:i:03:p:649-661_21 is not listed on IDEAS
    12. 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.
    13. repec:cup:apsrev:v:93:y:1999:i:04:p:931-933_21 is not listed on IDEAS
    14. repec:cup:apsrev:v:94:y:2000:i:02:p:305-321_22 is not listed on IDEAS
    15. Ghosh, Sucharita & Yamarik, Steven, 2004. "Are regional trading arrangements trade creating?: An application of extreme bounds analysis," Journal of International Economics, Elsevier, vol. 63(2), pages 369-395, July.
    16. MacIntyre, Andrew, 2001. "Institutions and Investors: The Politics of the Economic Crisis in Southeast Asia," International Organization, Cambridge University Press, vol. 55(01), pages 81-122, December.
    17. David Lektzian & Mark Souva, 2001. "Institutions and International Cooperation," Journal of Conflict Resolution, Peace Science Society (International), vol. 45(1), pages 61-79, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jpolrf:v:14:y:2011:i:3:p:243-258. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GPRE19 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.