Institutions, Infrastructure, And Trade / Joseph Francois Francois, Joseph

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Francois, Joseph
Appears In
World Development
Infrastructure (Economics); Developing countries; Workshops (Educational programs)
Academic; Trade
To link to full-text access for this article, visit this link: Byline: Joseph Francois Keywords: export underperformance; trade; institutions; infrastructure Abstract: We work with a panel of bilateral trade, exploring the influence of infrastructure and institutional quality on patterns of trade with a Poisson estimator, extended with the Baier and Berstrand method for multilateral resistance and accounting for firm heterogeneity and selection. Trade depends on institutional quality and exporter and importer access to well developed transport and communications infrastructure. While we emphasize exports of developing countries, low institutional and infrastructure quality in the South also limits market access for exports from the North. The pattern of results implies that policy emphasis on developing country market access while not providing enough support for trade facilitation, may be misplaced. Article History: Accepted 1 February 2013 Article Note: (footnote) [star] Thanks are due to participants at Econometric Society and European Economic Association annual meetings, various CEPR workshops, the European Trade Study Group annual onference, seminar participants at the Vienna Institute for International Economic Studies (WIIW), and workshops at the World Bank, IMF, and Kiel World Institute. This paper has benefited from support from DFID, and from an European Union-funded research and training network on trade, Industrialization, and Development. We also thank the editor and four referees at World Development for detailed comments and suggestions.
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