Showing 1 - 10 of 78
Ineffective institutions increase transaction costs and reduce trade. This paper shows that differences in the … effectiveness of institutions offer an explanation for the tendency of OECD countries to trade disproportionately with each other …
Persistent link: https://www.econbiz.de/10005209492
To serve foreign markets, firms can either export or set up a local subsidiary through horizontal Foreign Direct Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between countries is large, while exports become more important...
Persistent link: https://www.econbiz.de/10005016266
estimate gravity equations to investigate how trade patterns are affected by variation in the quality of institutions across … countries. The results show that institutions matter most for trade in differentiated goods. This variation in the importance of …
Persistent link: https://www.econbiz.de/10005144448
This paper studies the intangible costs of international trade by extending the basic gravity equation with measures of cultural and institutional distance, and institutional quality. Analyzing a sample of bilateral trade flows between 92 countries in 1999, we find that institutional distance...
Persistent link: https://www.econbiz.de/10005137166
This paper studies the effect of institutions on trade flows, using a gravity model approach. We start from a standard …-18%. Furthermore, a better quality of formal institutions tends to coincide with more trade. An increase in regulatory quality of one …
Persistent link: https://www.econbiz.de/10005137178
Embedding the efficient bargaining model into the R. Hall (1988) approach for estimating price-cost margins shows that both imperfections in the product and labor markets generate a wedge between factor elasticities in the production function and their corresponding shares in revenue. This...
Persistent link: https://www.econbiz.de/10005144471
This paper introduces a new estimator for the fixed effects dynamic panel data model with exogenous variables. This estimator does not share some of the drawbacks of recently developed IV and GMM estimators and has a good performance even in small samples. The nearly unbiased estimator is...
Persistent link: https://www.econbiz.de/10005137135
To study the effect of the euro on international goods trade one typically estimates a panel model for the level of trade. Trade levels increase over time, and we show that this is not fully explained by the included regressors. Because the euro is only present at the end of the sample, this may...
Persistent link: https://www.econbiz.de/10005137308
This paper is concerned with the interaction of regulated efficiency and World Trade Organization (WTO) accession and its impact on China’s motor vehicle sector. The analysis is conducted using a 23 sector–25 region computable general equilibrium model. Regulatory reform and internal...
Persistent link: https://www.econbiz.de/10005137241
-95. Estimation results suggest that (particularly state) institutions are significant for growth and, especially, foreign direct … investment (FDI), the latter in turn being important for the former. It is also found that the correlation between institutions … growth performance in transition countries than institutions per se. This suggests that macroeconomic stabilization and peace …
Persistent link: https://www.econbiz.de/10005144418