Frensch, Richard and Horvath, Roman and Huber, Stephan (2021) Openness effects on the rule of law: Size and patterns of trade. INTERNATIONAL REVIEW OF LAW AND ECONOMICS, 68: 106027. ISSN 0144-8188, 1873-6394
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Recent literature has analyzed three main channels regarding the effect of international trade on legal institutions: overall openness to trade, a specialization on institutionally intensive exports, and a dependence on exports of natural resources. Unlike previous literature, we examine all these channels within a single regression framework. Importantly, we develop a new measure of institutional intensity of exports at the goods level based on nearly one hundred million disaggregated bilateral trade flows. Our new measure shows that goods subject to international fragmentation of production are the most institutionally intensive. Using a sample of 144 countries, our regression results show that specialization on institutionally intensive exports, especially on fragmented goods, helps countries to improve their rule of law. In addition, we find that greater openness improves the rule of law, but we fail to find any effect from natural resources exports. (c) 2021 Elsevier Inc. All rights reserved.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | INSTITUTIONS; GROWTH; INCOME; Trade patterns; Openness; Rule of law |
| Subjects: | 300 Social sciences > 330 Economics 300 Social sciences > 340 Law |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Außenhandel (Professor Dr. Richard Frensch) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 28 Jul 2022 07:25 |
| Last Modified: | 28 Jul 2022 07:25 |
| URI: | https://pred.uni-regensburg.de/id/eprint/46003 |
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