Working Paper: NBER ID: w18851
Authors: Nathan Nunn; Daniel Trefler
Abstract: Domestic institutions can have profound effects on international trade. This chapter reviews the theoretical and empirical underpinnings of this insight. Particular attention is paid to contracting institutions and to comparative advantage, where the bulk of the research has been concentrated. We also consider the reverse causation running from comparative advantage to domestic institutions
Keywords: Domestic Institutions; Comparative Advantage; International Trade
JEL Codes: D23; F10; F19
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| comparative advantage (F11) | domestic institutions (F55) |
| good contracting institutions (D47) | lower production costs (D24) |
| domestic institutions (F55) | comparative advantage (F11) |
| lower production costs (D24) | comparative advantage in complex goods production (F12) |
| good contracting institutions (D47) | export patterns (F10) |