Transaction costs are a major reason why international trade flows are much smaller than traditional trade theory would … suggest. Trust between trading partners lowers transaction costs and may therefore enhance trade. The empirical analysis of … this paper shows that more trust leads to more trade so that part of the mystery of missing trade can be attributed to the …

exports within a framework of trade openness. Based on the trade gravity model, we examine the effect of governance on the … evolution of Colombian exports through an econometric approach that identifies, on the one hand, the influence of institutional … quality and the rule of law variables in the performance of Colombian exports in relation to other variables included in the …