International Trade, Do Institutions Matter? Evidence from Regional Studies

Theoretical Economics Letters, 2014, 4, 584-597

15 Pages Posted: 10 Aug 2014

See all articles by Paul Ojeaga

Paul Ojeaga

University of Bergamo

Emmanuel George

Olabisi Onabanjo University (OOU)

Philip O. Alege

Covenant University

Adeyemi Ogundipe

Covenant University

Date Written: August 9, 2014

Abstract

The study investigates the relationship between trade and institutions across regions using panel data for seven regions for the period 1980 to 2010 (31 years) and general method of moment estimation method (GMM). Consistent with past literature, institutions were found to have a significant effect on trade. Different measures that capture institutions were used, domestic and international institutions were found to be significantly promoting exports across regions and it was concluded that institutions mattered reasonably in the trade promotion discussion. Domestic institutions were protectionist in nature since they increased tariffs on imported goods, while international institutions were probably reducing regional tariffs.

Keywords: Exports, International Trade, Institutions, Market Size and Transaction Cost

Suggested Citation

Ojeaga, Paul and George, Emmanuel and Alege, Philip Olasupo and Ogundipe, Adeyemi, International Trade, Do Institutions Matter? Evidence from Regional Studies (August 9, 2014). Theoretical Economics Letters, 2014, 4, 584-597. Available at SSRN: https://ssrn.com/abstract=2478215

Paul Ojeaga (Contact Author)

University of Bergamo ( email )

Via Salvecchio, 19
Bergamo, 24129
Italy

Emmanuel George

Olabisi Onabanjo University (OOU)

P.M.B.2002
Permanent Site
Ago-Iwoye, Ogun 234
Nigeria

Philip Olasupo Alege

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Adeyemi Ogundipe

Covenant University ( email )

Canaanland
Km 10 Idiroko road
Ota, 24001
Nigeria
+2348161927372 (Phone)

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