Research on Institutional Quality Conditions and the Export of Intermediate Goods by Developing Countries

Subject Areas : Business Strategy

gholamreza rezaee ¹ , farzad karimi ²

1 - Faculty of economics, Dehaghan branch, Islamic Azad University, Dahaghan, Iran
2 - Associate Professor in International Economics, Department of Management and Accounting, Islamic Azad University of Mobarakeh, Mobarakeh, Iran

Received: 2023-02-03 Accepted : 2023-06-12 Published : 2023-10-01

Keywords: Good governance, Intermediate goods, developing countries, Export,

Abstract :

The present study aimed to investigate the effects of institutional quality on the export ofintermediate goods 3 by developing countries according to good, moderate, and bad institutionalquality conditions. The institutional variable included the World Bank’s average goodgovernance index. The estimation of the model was carried out using panel data for 1997-2021on a sample of 131 developing countries by the application of the Estimated Generalized LeastSquares (EGLS) method. The results show that the institutional quality has an impact on bilateralexports of developing countries only among the pairs of countries with similar conditions ofmoderate institutional quality. Thus, the governments of developing countries having moderategovernance conditions need to prioritize development and extensive reforms concerninginstitutional development to increase their exports of intermediate goods.JFL Classification: F14, O14, O24, Q58

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