The gravity of institutions in a resource-rich country: the case of Azerbaijan

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F17%3A10329381" target="_blank" >RIV/00216208:11230/17:10329381 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.1007/s10368-016-0337-3" target="_blank" >http://dx.doi.org/10.1007/s10368-016-0337-3</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s10368-016-0337-3" target="_blank" >10.1007/s10368-016-0337-3</a>

Result language

angličtina

Original language name

The gravity of institutions in a resource-rich country: the case of Azerbaijan

Original language description

This research study analyzes the effects of similarities in economic size and institutional level on bilateral trade. It is interested in whether similarities in country size and at the institutional level encourage enlarging volumes of bilateral trade between countries. Using panel data of the bilateral trade of Azerbaijan with 50 different countries from 1995 to 2012, estimating by random and fixed effects, as well as the Poisson Pseudo Maximum Likelihood (PPML), the study finds that similarity of income size is necessary for increasing bilateral trade across countries. The main finding is that high quality rule of law and more control of corruption boost confidence in international trade, therefore, reliable countries tend to trade more between each other, and less with unreliable countries. Unreliable countries trade more with each other, and less with reliable ones. A large divergence in institutional quality performance reduces bilateral trade across countries. The results show that a long-term contract is one of the main indicator for natural resource exports; therefore distance might not have significant impact on bilateral trade relationships.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

International Economics and Economic Policy

ISSN

1612-4804

e-ISSN

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Volume of the periodical

14

Issue of the periodical within the volume

2

Country of publishing house

DE - GERMANY

Number of pages

23

Pages from-to

239-261

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-84960118326