Groot, Henri L.F. de; Linders, Gert-Jan; Rietveld, Piet; … - Tinbergen Instituut - 2003
This paper studies the effect of institutions on trade flows, using a gravity modelapproach. We start from a standard … gravity equation that incorporates geographical proximity,language, trade policy and common history. These factors reflect the …-18%. Furthermore, a better quality of formal institutions tends to coincide with moretrade. An increase in regulatory quality of one …