Twenty‐First‐Century Trade Governance: Findings from the Commonwealth Countries

17 Pages Posted: 6 May 2020

See all articles by Sangeeta Khorana

Sangeeta Khorana

Bournemouth University

Inmaculada Martínez-Zarzoso

University of Goettingen (Göttingen) - School of Law, Economics, Social Sciences; Jaume I University - Department of Economics

Date Written: April 2020

Abstract

This paper focuses on twenty‐first‐century‐trade governance patterns within the Commonwealth (CW) countries. It uses an augmented gravity model to examine the role of governance in influencing trade and investment flows, and whether enhanced trade governance within the CW countries could potentially foster trade gains, on a both intra‐ and extra‐CW basis. Results show a 10% reduction in the costs incurred for a good to exit a country can increase intra‐CW exports by 5%. Second, contract enforcement is more efficient among CW members, and requires 20% less time compared to the world average. Third, every 1 percentage point improvement in government effectiveness triggers an increase in exports from CW, at 3.4%, compared to the rest of the world, at 2.4%. Finally, trade between CW members is three times higher when they belong to an existing regional trade agreement.

JEL Classification: F10, 011, F13

Suggested Citation

Khorana, Sangeeta and Martínez-Zarzoso, Inmaculada, Twenty‐First‐Century Trade Governance: Findings from the Commonwealth Countries (April 2020). Contemporary Economic Policy, Vol. 38, Issue 2, pp. 380-396, 2020, Available at SSRN: https://ssrn.com/abstract=3593689 or http://dx.doi.org/10.1111/coep.12450

Sangeeta Khorana (Contact Author)

Bournemouth University ( email )

The Business School
Bournemouth University, Dorset BH8 8ER
United Kingdom

Inmaculada Martínez-Zarzoso

University of Goettingen (Göttingen) - School of Law, Economics, Social Sciences ( email )

Germany

Jaume I University - Department of Economics ( email )

Campus del Riu Sec.
E-12071 Castellon
Spain

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
58
PlumX Metrics