Institutional Quality Matters: Evidence from Trade Flows of ASEAN-6 Countries

초록

This study examines the impacts of institutional quality on export patterns of ASEAN-6 countries using panel data from 115 economies over the period 2000–2012. The results of the fixed and random effects estimation methods show that better institutional quality in ASEAN’s trading partners plays a crucial role in the bloc’s export performance. By decomposing institutional quality using different components, we also find that the importers’ legal structure and protection of property rights as well as freedom to trade internationally are important determinants in attracting more exports from ASEAN countries. For exporting countries, the sizes of the government and freedom to trade internationally also play a critical role in boosting trade from the bloc.

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