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DOES TRADE OPENNESS AFFECT INSTITUTIONAL QUALITY?

Khalid, Usman LU (2011) NEKM01 20111
Department of Economics
Abstract
A rich literature in economics has identified Institutions as a key factor in explaining the disparity in growth across countries. It is thus essential to look at the determinants of institutional quality. This study tries to capture the affect of one of the possible determinants of institutional quality that is trade openness. Theory suggests that there is a positive relationship between trade openness and institutional quality. This study uses panel data estimation techniques to uncover the relationship between trade openness and institutional quality. The results suggest that there exists a positive relationship between trade openness and institutional quality, although it is not significant for the legal system and property right index... (More)
A rich literature in economics has identified Institutions as a key factor in explaining the disparity in growth across countries. It is thus essential to look at the determinants of institutional quality. This study tries to capture the affect of one of the possible determinants of institutional quality that is trade openness. Theory suggests that there is a positive relationship between trade openness and institutional quality. This study uses panel data estimation techniques to uncover the relationship between trade openness and institutional quality. The results suggest that there exists a positive relationship between trade openness and institutional quality, although it is not significant for the legal system and property right index available from "Economic Freedom of the World‟ dataset. Furthermore, the results are quite robust to the changes in definitions of the variables as well as to the inclusion of additional control variables. (Less)
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author
Khalid, Usman LU
supervisor
organization
course
NEKM01 20111
year
type
H1 - Master's Degree (One Year)
subject
keywords
Trade openness, Trade liberalization, Institutions, Institutional development, Institutional quality.
language
English
id
1963313
date added to LUP
2011-06-16 14:48:59
date last changed
2011-06-16 14:48:59
@misc{1963313,
  abstract     = {A rich literature in economics has identified Institutions as a key factor in explaining the disparity in growth across countries. It is thus essential to look at the determinants of institutional quality. This study tries to capture the affect of one of the possible determinants of institutional quality that is trade openness. Theory suggests that there is a positive relationship between trade openness and institutional quality. This study uses panel data estimation techniques to uncover the relationship between trade openness and institutional quality. The results suggest that there exists a positive relationship between trade openness and institutional quality, although it is not significant for the legal system and property right index available from "Economic Freedom of the World‟ dataset. Furthermore, the results are quite robust to the changes in definitions of the variables as well as to the inclusion of additional control variables.},
  author       = {Khalid, Usman},
  keyword      = {Trade openness,Trade liberalization,Institutions,Institutional development,Institutional quality.},
  language     = {eng},
  note         = {Student Paper},
  title        = {DOES TRADE OPENNESS AFFECT INSTITUTIONAL QUALITY?},
  year         = {2011},
}