Why don’t mena countries trade more ? : the curse of bad institutions
Joint Authors
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2017, Issue 1075-1171 (31 Dec. 2017), pp.1-48, 48 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2017-12-31
Country of Publication
Egypt
No. of Pages
48
Main Subjects
Topics
Abstract EN
This paper explores the relation between institutions and trade in the Middle East and North Africa (MENA) region.
Although most of the countries suffer from a clear deficit of “good” institutions, the MENA region was neglected in the literature on institutions and trade.
This literature offers a broad consensus that bad institutions hamper trade, and that trade liberalization engenders institutional reforms.
Taking into account the inverse relation between institutions and trade, we use a gravity model that explains bilateral trade for disaggregated goods and service sectors for 21 MENA countries over the period 1995-2014.
Our results show that, in the presence of excessive zero trade observations, poor institutions can be considered as fixed export costs that help explain the zero probability of trade for some countries.
Indeed, we find that institutions do matter for trade after controlling for the endogeneity problem between institutions and trade.
Also, alternative aspects of institutions have different effects on trade in goods and trade in services.
American Psychological Association (APA)
Karam, Fida& Zaki, Shahir. 2017. Why don’t mena countries trade more ? : the curse of bad institutions. Economic Research Forum : Working Paper Series،Vol. 2017, no. 1075-1171, pp.1-48.
https://search.emarefa.net/detail/BIM-760618
Modern Language Association (MLA)
Karam, Fida& Zaki, Shahir. Why don’t mena countries trade more ? : the curse of bad institutions. Economic Research Forum : Working Paper Series No. 1075-1171 (Dec. 2017), pp.1-48.
https://search.emarefa.net/detail/BIM-760618
American Medical Association (AMA)
Karam, Fida& Zaki, Shahir. Why don’t mena countries trade more ? : the curse of bad institutions. Economic Research Forum : Working Paper Series. 2017. Vol. 2017, no. 1075-1171, pp.1-48.
https://search.emarefa.net/detail/BIM-760618
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 19-48
Record ID
BIM-760618