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The effect of trade and political institutions on economic institutions

Khalid, Usman LU (2017) In Journal of International Trade and Economic Development 26(1). p.89-110
Abstract

This study examines the relationship between trade and the quality of economic institutions under different political institutions. It uses panel data of 138 countries from 1984 to 2010 and employs instrumental variables and identification through heteroscedasticity to mitigate the problem of endogeneity. The findings suggest that the effect of trade on economic institutions reduces significantly in the presence of extractive political institutions. The findings indicate that ‘trade’ is not a sufficient tool for improving economic institutions; rather, trade policies need to be embedded in distinct political institutions to trigger the substantive improvement of economic institutions.

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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
economic institutions, institutional change, political institutions, Trade
in
Journal of International Trade and Economic Development
volume
26
issue
1
pages
22 pages
publisher
Taylor & Francis
external identifiers
  • scopus:84978743892
  • wos:000390660400005
ISSN
0963-8199
DOI
10.1080/09638199.2016.1206142
language
English
LU publication?
yes
id
ba370348-40d4-4d2c-9247-1025cedfbddb
date added to LUP
2017-01-16 14:47:56
date last changed
2018-01-07 11:45:18
@article{ba370348-40d4-4d2c-9247-1025cedfbddb,
  abstract     = {<p>This study examines the relationship between trade and the quality of economic institutions under different political institutions. It uses panel data of 138 countries from 1984 to 2010 and employs instrumental variables and identification through heteroscedasticity to mitigate the problem of endogeneity. The findings suggest that the effect of trade on economic institutions reduces significantly in the presence of extractive political institutions. The findings indicate that ‘trade’ is not a sufficient tool for improving economic institutions; rather, trade policies need to be embedded in distinct political institutions to trigger the substantive improvement of economic institutions.</p>},
  author       = {Khalid, Usman},
  issn         = {0963-8199},
  keyword      = {economic institutions,institutional change,political institutions,Trade},
  language     = {eng},
  month        = {01},
  number       = {1},
  pages        = {89--110},
  publisher    = {Taylor & Francis},
  series       = {Journal of International Trade and Economic Development},
  title        = {The effect of trade and political institutions on economic institutions},
  url          = {http://dx.doi.org/10.1080/09638199.2016.1206142},
  volume       = {26},
  year         = {2017},
}