2018
DOI: 10.26710/reads.v4i2.409
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Institutional Determinants of Bilateral Trade Flows: A Panel Data Analysis

Abstract: This study analyzes the institutional determinants of bilateral trade flows and homogeneity effect for Pakistan with ECO countries by using panel data for years 2003-2014. Gravity trade model is estimated through panel least squares technique. Impact of institutions is very important for international trade as international businesses involve many governance systems. The results show that average impact of institutional quality and bilateral trade flows is positive. Moreover, institutional homogeneity effect e… Show more

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Cited by 11 publications
(8 citation statements)
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“…Moreover, the contagious border and colonial relationship positively and significantly influenced Indonesia's agricultural exports. It complies with previous research by Sheikh, Chaudhry, Gul, and Akhtar (2018), revealing that bilateral agricultural exports could be enhanced by the two variables adopted by Indonesia and the importers. Table 6 portrays the results of Indonesia's agri-food export potential to destination countries.…”
Section: Resultssupporting
confidence: 92%
“…Moreover, the contagious border and colonial relationship positively and significantly influenced Indonesia's agricultural exports. It complies with previous research by Sheikh, Chaudhry, Gul, and Akhtar (2018), revealing that bilateral agricultural exports could be enhanced by the two variables adopted by Indonesia and the importers. Table 6 portrays the results of Indonesia's agri-food export potential to destination countries.…”
Section: Resultssupporting
confidence: 92%
“…The coefficient of TRADE is 0.34 which shows the positive and insignificant relationship between TRADE and GDS in the long run. So, our results are consistent with the studies (Inoue, 2018;Lartey, 2013;Gruben and Mcleod, 1998;Sheikh et al 2018;Sheikh et al 2019). If a country is facing an external debt burden, then the major part of the gross domestic product of the economy is used for debt services that will negatively impact gross domestic savings.…”
Section: Long Run Resultssupporting
confidence: 91%
“…Second, is the absence of both cultural and economic distance, which played as core conditions only in 2018 and 2020. For high-level agricultural exports, cultural distance [12,48,49] and the absence of economic and institutional distance [33,50,51] are the core conditions in the configuration in most years. The impacts of these vectors are changing over time.…”
Section: Discussionmentioning
confidence: 99%