de Groot, Henri L.F. Linders, Gert-Jan Rietveld, Piet
Year of Publication:
Tinbergen Institute Discussion Paper 03-092/3
Ineffective institutions increase transaction costs and reduce trade. This paper shows that differences in the effectiveness of institutions offer an explanation for the tendency of OECD countries to trade disproportionately with each other, and with non-OECD countries.