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- W285295798 abstract "This paper studies the flows of international trade from an institutional comparative advantageperspective. It establishes a good governance threshold necessary for the well-functioning ofcommerce. The paper incorporates institutional quality into the gravity equation of trade throughan iceberg transaction cost. Then, it replicates accessibility to foreign markets based onbilateral distance and geographical characteristics as suggested by Redding and Venables(2004) in order to estimate the GDP equation incorporating the World Bank GovernanceMatters indicators. The results show that only when a country enjoys high enough governmenteffectiveness can it effectively benefit from accessibility to markets. Attributing goodgovernance to a country that has not could imply an increase in GDP of around 20 percent." @default.
- W285295798 created "2016-06-24" @default.
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- W285295798 date "2010-01-01" @default.
- W285295798 modified "2023-09-24" @default.
- W285295798 title "The governance threshold in international trade flows" @default.
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