Why can’t MENA countries trade more?: The curse of bad institutions
This paper explores the relationship between institutions and trade in the Middle East and North Africa (MENA) region. The literature offers a broad consensus that bad institutions hamper trade and that trade liberalization engenders institutional reforms; however, MENA has generally been neglected...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2017
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/148637 |
| _version_ | 1855519620408016896 |
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| author | Karam, Fida Zaki, Chahir |
| author_browse | Karam, Fida Zaki, Chahir |
| author_facet | Karam, Fida Zaki, Chahir |
| author_sort | Karam, Fida |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper explores the relationship between institutions and trade in the Middle East and North Africa (MENA) region. The literature offers a broad consensus that bad institutions hamper trade and that trade liberalization engenders institutional reforms; however, MENA has generally been neglected in this literature, even though most countries in the region suffer from a clear deficit of “good” institutions. Taking into account the inverse relationship between institutions and trade, we use a gravity model that explains bilateral trade for disaggregated goods and service sectors for 21 MENA countries over the period 1995-2014. Our results show that in the presence of excessive zero trade observations, poor institutions can be considered as fixed export costs that help explain the zero probability of trade for some countries. We find that institutions do matter for trade after controlling for the endogeneity problem between institutions and trade. |
| format | Artículo preliminar |
| id | CGSpace148637 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1486372025-11-06T05:40:46Z Why can’t MENA countries trade more?: The curse of bad institutions Karam, Fida Zaki, Chahir exports institutions trade policies trade governance This paper explores the relationship between institutions and trade in the Middle East and North Africa (MENA) region. The literature offers a broad consensus that bad institutions hamper trade and that trade liberalization engenders institutional reforms; however, MENA has generally been neglected in this literature, even though most countries in the region suffer from a clear deficit of “good” institutions. Taking into account the inverse relationship between institutions and trade, we use a gravity model that explains bilateral trade for disaggregated goods and service sectors for 21 MENA countries over the period 1995-2014. Our results show that in the presence of excessive zero trade observations, poor institutions can be considered as fixed export costs that help explain the zero probability of trade for some countries. We find that institutions do matter for trade after controlling for the endogeneity problem between institutions and trade. 2017 2024-06-21T09:25:17Z 2024-06-21T09:25:17Z Working Paper https://hdl.handle.net/10568/148637 en application/pdf International Food Policy Research Institute Karam, Fida; and Zaki, Chahir. 2017. Why can’t MENA countries trade more? The curse of bad institutions. AGRODEP Working Paper 0037. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/148637 |
| spellingShingle | exports institutions trade policies trade governance Karam, Fida Zaki, Chahir Why can’t MENA countries trade more?: The curse of bad institutions |
| title | Why can’t MENA countries trade more?: The curse of bad institutions |
| title_full | Why can’t MENA countries trade more?: The curse of bad institutions |
| title_fullStr | Why can’t MENA countries trade more?: The curse of bad institutions |
| title_full_unstemmed | Why can’t MENA countries trade more?: The curse of bad institutions |
| title_short | Why can’t MENA countries trade more?: The curse of bad institutions |
| title_sort | why can t mena countries trade more the curse of bad institutions |
| topic | exports institutions trade policies trade governance |
| url | https://hdl.handle.net/10568/148637 |
| work_keys_str_mv | AT karamfida whycantmenacountriestrademorethecurseofbadinstitutions AT zakichahir whycantmenacountriestrademorethecurseofbadinstitutions |