Institutional distance and international networking

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International Trade and Institutional Change ∗

This paper analyzes the impact of international trade on the quality of institutions, such as contract enforcement, property rights, or investor protection. It presents a model in which institutional differences play two roles: they create rents for some parties within the economy, and they are a source of comparative advantage in trade. Institutional quality is determined as an equilibrium of ...

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Institutions — quality of contract enforcement, property rights, shareholder protection, and the like — have received a great deal of attention in recent years. Yet trade theory has not considered the implications of institutional differences, beyond treating them simply as different technologies or taxes. The purpose of this paper is twofold. First, we propose a simple model of international t...

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ژورنال

عنوان ژورنال: Entrepreneurship & Regional Development

سال: 2017

ISSN: 0898-5626,1464-5114

DOI: 10.1080/08985626.2017.1407365