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Institutional quality and trade: which institutions? Which trade?

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  • Pierre-Guillaume Méon
  • Khalid Sekkat

Abstract

Using a panel of countries over 1920-2000, this paper examines the extent to which different dimensions of the institutional framework affect exports of total, manufactured, and non-manufactured goods. It is observed that exports of manufactured goods are positively affected by the control of corruption, the rule of law, government effectiveness, and the lack of political violence. This result does not hold for non-manufactured and total exports. Instrumental variable regressions finally confirm that the control of corruption, but not the other dimensions of governance, robustly cause manufactured exports.

Suggested Citation

  • Pierre-Guillaume Méon & Khalid Sekkat, 2006. "Institutional quality and trade: which institutions? Which trade?," DULBEA Working Papers 06-06.RS, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:dul:wpaper:06-06rs
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    More about this item

    Keywords

    Institutions; governance; trade; manufactured exports; non-manufactured exports.;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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