GTAP Resources: Resource Display
| GTAP Resource #6256 |
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"Impacts of Institutional Efficiency on Trade in Developed and Developing Countries" by Lopes Afonso, Damares, Suzana Bastos, Fernando Perobelli and Admir Antonio Betarelli Junior Abstract Current academic debate has evaluated the role of institutions in international trade. This article contributes to this debate and analyzes the impacts of the institutional efficiency on exports in developed and developing countries. This analysis was conducted by an empirical strategy in two integrated stages. In the first stage, we estimated the impact of institutional efficiency on non-manufactured and manufactured exports by a gravity model. Then, we projected the effects of improvements in institutional efficiency that reduce transaction costs to trade, which are simulated using the Global Trade Analysis Project (GTAP) model. Findings revealed that the low institutional efficiency of developing countries negatively affects its exports in the manufactured sectors. It is also shown that the reduction in transaction costs associated with these exports could reverse this scenario, by increasing manufactured exports from developing countries and generating a positive impact on growth and welfare of these countries. |
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- Economic development - Non-Tariff barriers |
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Last Modified: 9/15/2023 2:05:45 PM
