Lanz, Rainer; Lee, Woori; Stolzenburg, Victor - 2019 - Manuscript date: 24 January 2019
This paper brings together three strands of literature on the determinants of international trade − distance, formal … model, we find that the importance of formal institutions (rule of law) for bilateral trade increases with distance … substitution effect does not decrease with distance. Our findings contribute to explaining the persistent negative effect of …