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The role of institutional quality in the international trade of a Latin American country: evidence from Colombian export performance

This paper analyses the relevance of Colombian institutional quality in recent years in terms of the performance of its exports within a framework of trade openness. Based on the trade gravity model, we examine the effect of governance on the evolution of Colombian exports through an econometric app...

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Autores principales: Abreo, Carlos, Bustillo, Ricardo, Rodriguez, Carlos
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer Berlin Heidelberg 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8603646/
https://www.ncbi.nlm.nih.gov/pubmed/34815926
http://dx.doi.org/10.1186/s40008-021-00253-5
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author Abreo, Carlos
Bustillo, Ricardo
Rodriguez, Carlos
author_facet Abreo, Carlos
Bustillo, Ricardo
Rodriguez, Carlos
author_sort Abreo, Carlos
collection PubMed
description This paper analyses the relevance of Colombian institutional quality in recent years in terms of the performance of its exports within a framework of trade openness. Based on the trade gravity model, we examine the effect of governance on the evolution of Colombian exports through an econometric approach that identifies, on the one hand, the influence of institutional quality, and on the other hand, the influence of the institutional distance between Colombia and its trading partners. We use a panel data set for 2005–2018, through which the export flows from Colombia to 136 of its trading partners are considered. The findings indicate that Colombian institutional quality and the institutional distance between the country and its partners are statistically significant and affect its foreign sales. Similarly, there is a prominent influence of regulatory quality and the rule of law variables in the performance of Colombian exports in relation to other variables included in the model. We conclude that the Colombian government must improve its institutional quality considerably as a fundamental step towards boosting its overseas sales, not least because the country’s institutional distance from the world average is notable, which also affects its exports.
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spelling pubmed-86036462021-11-19 The role of institutional quality in the international trade of a Latin American country: evidence from Colombian export performance Abreo, Carlos Bustillo, Ricardo Rodriguez, Carlos J Econ Struct Research This paper analyses the relevance of Colombian institutional quality in recent years in terms of the performance of its exports within a framework of trade openness. Based on the trade gravity model, we examine the effect of governance on the evolution of Colombian exports through an econometric approach that identifies, on the one hand, the influence of institutional quality, and on the other hand, the influence of the institutional distance between Colombia and its trading partners. We use a panel data set for 2005–2018, through which the export flows from Colombia to 136 of its trading partners are considered. The findings indicate that Colombian institutional quality and the institutional distance between the country and its partners are statistically significant and affect its foreign sales. Similarly, there is a prominent influence of regulatory quality and the rule of law variables in the performance of Colombian exports in relation to other variables included in the model. We conclude that the Colombian government must improve its institutional quality considerably as a fundamental step towards boosting its overseas sales, not least because the country’s institutional distance from the world average is notable, which also affects its exports. Springer Berlin Heidelberg 2021-11-19 2021 /pmc/articles/PMC8603646/ /pubmed/34815926 http://dx.doi.org/10.1186/s40008-021-00253-5 Text en © The Author(s) 2021 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) .
spellingShingle Research
Abreo, Carlos
Bustillo, Ricardo
Rodriguez, Carlos
The role of institutional quality in the international trade of a Latin American country: evidence from Colombian export performance
title The role of institutional quality in the international trade of a Latin American country: evidence from Colombian export performance
title_full The role of institutional quality in the international trade of a Latin American country: evidence from Colombian export performance
title_fullStr The role of institutional quality in the international trade of a Latin American country: evidence from Colombian export performance
title_full_unstemmed The role of institutional quality in the international trade of a Latin American country: evidence from Colombian export performance
title_short The role of institutional quality in the international trade of a Latin American country: evidence from Colombian export performance
title_sort role of institutional quality in the international trade of a latin american country: evidence from colombian export performance
topic Research
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8603646/
https://www.ncbi.nlm.nih.gov/pubmed/34815926
http://dx.doi.org/10.1186/s40008-021-00253-5
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