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We propose and apply methods to quantify the impact of national institutions on international trade and development. We … are able to identify the direct impact of country-specific institutions on international trade within the structural … gravity framework. Our approach naturally addresses the prominent issue of endogenous institutions. The empirical analysis …
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We show that the countries of the former Austro-Hungarian monarchy trade significantly more with one another in the aftermath of the collapse of the Iron Curtain than predicted by a standard gravity model. This trade surplus declines linearly and monotonically over time. We argue that these...
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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...
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