Does Trade Foster Institutions? An Empirical Assessment

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Title: Does Trade Foster Institutions? An Empirical Assessment
Authors: Nicolini, Marcella
Paccagnini, Alessia
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Date: 2011
Abstract: The relationship between trade and institutions has been extensively debated by trade economists and political scientists. The aim of the present paper is to provide some empirical evidence on the causal relationship between institutions and trade flows in a panel framework. We present a Granger causality test (1969) as well as a Hurlin and Venet (2001) test for panel data using a bilateral trade flows panel that covers 29 years. The issue of zero flows of trade is handled by using a panel Poisson Pseudo-Maximum Likelihood estimator.
Type of material: Journal Article
Publisher: University of Perugia
Copyright (published version): 2011 University of Perugia Electronic Press
Keywords: Institutional quality;Granger causality test;Panel data;Zero trade flows
DOI: 10.5202/rei.v2i2.28
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Research Collection

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