Institutions — quality of contract enforcement, property rights, shareholder protection, and the like — have received a great deal of attention in recent years. Yet trade theory has not considered the implications of institutional differences, beyond treating them simply as different technologies or taxes. The purpose of this paper is twofold. First, we propose a simple model of international t...

many studies indicate that trade costs are large and significant. the question is whether trade costs could explain the size of the trade and shed light on the mystery of missing trade. in this framework, this paper studies 73 developing countries in the period 2005-2011. the results of our panel data analysis signify that “the pecuniary costs of trade” and “the number of necessary documents” a...

Trade among Arab countries has been very weak despite previous efforts to engage into different forms of regional economic integration. Using the flexible framework provided by the Gravity Model, the paper gives an order of magnitude of the main factors often presented in explaining the weakness of inter-Arab Trade. The results of the model together with several indicators about export profiles...

This paper uses a static and dynamic gravity model of trade to investigate the link between German development aid and exports from Germany to the recipient countries. The findings indicate that in the long run German aid is associated with an increase in exports of goods that is larger than the aid flow, with a point estimate of 140 percent of the aid given. In addition, the evolution of the e...