Using a gravity model of trade, this paper examines the consequences on inter- national trade of the quality and the similarity of domestic institutions. We find an asymme- tric impact on trade of institutions quality. Our estimations show that a country exports all the more since the quality of...

Countries referred to as “developing” are being urged more and more to reform their “investment climate”. It is often said that a “good” investment climate leads to both increased economic growth and reduced poverty. In these countries, corrupt government, clientelism, a lack of...