Does Governance Matter for Enhancing Trade? Empirical Evidence from Asia
The primary objective of this paper is to find whether or not the governance and institutions matter for enhancing Asias trade. In this study, we have performed a comprehensive empirical analysis of the linkages between governance and trade at the Asian subregional level. Our results indicate that all individual governance indicators except regulatory quality have significant impact on trade in Asia, of which government effectiveness is the most crucial for Asias trade promotion. One of the conclusions of this paper is that soft infrastructure such as the institutions and governance are important for enhancing Asias trade. In other words, good governance and institutions help unlock trade potential of a region (or a nation). Improved governance, particularly at the sectoral level, can carry huge payoffs at a time when Asia is planning to pursue a free trade for the entire region. Ignoring governance weaknesses can stultify economic returns to free trade. Therefore, more effective policy approaches toward improved governance are needed to complement the regional trade policy in Asia and beyond.
|Date of creation:||Jan 2010|
|Date of revision:|
|Contact details of provider:|| Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200|
Web page: http://www.eaber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matthias Helble & Ben Shepherd & John S. Wilson, 2009. "Transparency and Regional Integration in the Asia Pacific," The World Economy, Wiley Blackwell, vol. 32(3), pages 479-508, 03.
- Gil S. Epstein & Ira N. Gang, 2006.
"Good Governance and Good Aid Allocation,"
Departmental Working Papers
200627, Rutgers University, Department of Economics.
- Kolstad, Ivar & Wiig, Arne, 2009. "Is Transparency the Key to Reducing Corruption in Resource-Rich Countries?," World Development, Elsevier, vol. 37(3), pages 521-532, March.
- Andrei A. Levchenko, 2004.
"Institutional Quality and International Trade,"
IMF Working Papers
04/231, International Monetary Fund.
- Campos, Nauro F. & Nugent, Jeffrey B., 1998. "Institutions and growth: can human capital be a link?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
- Joseph Francois & Miriam Manchin, 2007.
"Institutions, Infrastructure, and Trade,"
IIDE Discussion Papers
20070401, Institue for International and Development Economics.
- Joseph F. Francois & Miriam Manchin, 2007. "Institutions, infrastructure, and trade," Economics working papers 2007-05, Department of Economics, Johannes Kepler University Linz, Austria.
- Francois, Joseph & Manchin, Miriam, 2007. "Institutions, Infrastructure and Trade," CEPR Discussion Papers 6068, C.E.P.R. Discussion Papers.
- Joseph Francois & Miriam Manchin, 2007. "Institutions, Infrastructure, and Trade," Working Papers 77, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
- Francois, Joseph & Manchin, Miriam, 2007. "Institutions, infrastructure, and trade," Policy Research Working Paper Series 4152, The World Bank.
- Joseph Francois & Miriam Manchin, 2007. "Institutions, Infrastructure and Trade," Development Working Papers 224, Centro Studi Luca d\'Agliano, University of Milano.
- Laura Alfaro & Sebnem Kalemli-Ozcan, 2004. "Why does not capital frlow from rich to poor countries? An Empirical investigation," Econometric Society 2004 North American Summer Meetings 416, Econometric Society.
- Alberto Chong & Mark Gradstein, 2004.
"Inequality and Institutions,"
Research Department Publications
4361, Inter-American Development Bank, Research Department.
- Laura Alfaro & Sebnem Kalemli-Ozcan, 2004.
"Why doesn't capital flow from rich to poor countries? An empirical investigation,"
2004 Meeting Papers
53, Society for Economic Dynamics.
- Laura Alfaro & Sebnem Kalemli-Ozcan & Vadym Volosovych, 2008. "Why Doesn't Capital Flow from Rich to Poor Countries? An Empirical Investigation," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 347-368, May.
- Sebnem Kalemli-Ozcan & Laura Alfaro & Vadym Volosovych, 2003. "Why doesn’t Capital Flow from Rich to Poor Countries? An Empirical Investigation," Working Papers 2003-01, Department of Economics, University of Houston.
- Laura Alfaro & Sebnem Kalemli-Ozcan & Vadym Volosovych, 2005. "Why Doesn't Capital Flow from Rich to Poor Countries? An Empirical Investigation," NBER Working Papers 11901, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eab:govern:22792. 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: (Shiro Armstrong)
If references are entirely missing, you can add them using this form.