The quality of institutions and its impact on international trade

Abstract

As a consequence of the increasing international mobility of productive resources, national institutions and organizations relevant for the regulation of international trade are no longer, or mainly, those related with customs operating in the border. They now involve an increasing set of other institutions and organizations operating within nations that participate in this international flow of productive resources. This new scenario derives from the geographical presence of transnational corporations at least partially subject to the domestic legislation of nations where they are located. Consequently, the quality of national institutions directly affect international trade and, more generally, overall international economic relations.