Evaluating the effect of various institutions on foreign trade of selected countries

• Main Authors: Rahman Mirzaeian, Kiomars Sohaili, Seyed Mohammad Bagher Najafi, Jamal Fathollahi
• Format: Article
• Language: English
• Published: Editorial AAR 2020-12-01
• Series: Laplage em Revista
• Subjects: Institution; Business, and gravity model; Classification
• Online Access: https://laplageemrevista.editorialaar.com/index.php/lpg1/article/view/1182

In this article, the effectiveness of various legal institutions, including market-creating institutions, market-regulating institutions, market-stabilizing institutions, and market-legitimizing institutions, the business has been accurately quantified based on scientific theories. To quantify the impact of institutional variables The required annual data related to these variables for the period 2014-2005 have been collected in selected countries. The data panel model has been used to estimate the effect of independent and control variables on the dependent variable of foreign trade. Before estimating the model, pre-estimation tests including the Durability test, etc., and F-Limer tests were performed to determine whether the model was integrated. The results of estimating the models regarding the effectiveness of different types of institutions show that; the impact of market regulators on trade in both groups of countries is positive and significant and the impact of market stabilization institutions on foreign trade has a positive impact only in the group of Asian countries, with the increase in the levels of this type of institutions, the share of trade in this group of countries increases.