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Should Bangladesh exports to countries with better institutional or comparatively similar institutional form?

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  • Pavel, Md Sadik
  • Burhan, Seikh Ruksana
  • Papiya, Tanim

Abstract

Using panel data for the years 2006 to 2015, this study empirically investigates the effect of rule of law as an institution on Bangladesh’s exports to twenty-eight European Union countries (EU28) based on gravity model analysis. Two-step econometric results suggest that institutional rule of law is strongly associated with Bangladesh’s exports, and institutional quality provides evidence of this significant effect. Furthermore, exports of Bangladesh are driven by economic size, market size, and the real exchange rate as well as rule of law. These results are suggestive of an important joint role for both trade and institutions in the long run.

Suggested Citation

  • Pavel, Md Sadik & Burhan, Seikh Ruksana & Papiya, Tanim, 2018. "Should Bangladesh exports to countries with better institutional or comparatively similar institutional form?," MPRA Paper 91976, University Library of Munich, Germany, revised 11 Nov 2018.
    • Handle: RePEc:pra:mprapa:91976
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    References listed on IDEAS

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    More about this item

    Keywords

    Bangladesh; Gravity model; Institution; Panel data; Rule of law.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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