Table 10: Institutions and Trade within and between Regions

||(1)|(2)|(3)|(4)|
|---|---|---|---|---|
|**_Panel A:_**|||||
|_Dependent Variable: _|_Pr_(_Exportjist _|_>_0)|||
|Days|-0.0003|-0.003<sup>_∗∗∗_</sup>|-0.003<sup>_∗∗∗_</sup>|-0.001<sup>_∗_</sup>|
|Rule of law|0.062|-0.326<sup>_∗∗∗_</sup>|-0.254<sup>_∗∗∗_</sup>|-0.129<sup>_∗∗∗_</sup>|
|Rule of law x Inst-Int|0.181|0.112<sup>_∗∗∗_</sup>|0.111<sup>_∗∗∗_</sup>|0.361<sup>_∗∗∗_</sup>|
|lnH|-0.010|-0.144|-0.214<sup>_∗∗_</sup>|-0.031|
|lnH x H-Int|0.010|0.038<sup>_∗∗∗_</sup>|0.039<sup>_∗∗∗_</sup>|0.103<sup>_∗∗∗_</sup>|
|lnK|0.203|-0.972<sup>_∗∗∗_</sup>|-0.697<sup>_∗∗∗_</sup>|0.349<sup>_∗∗_</sup>|
|lnK x K-Int|0.047|0.416<sup>_∗∗∗_</sup>|0.367<sup>_∗∗∗_</sup>|-0.735<sup>_∗∗∗_</sup>|
|NR|0.007|-0.021<sup>_∗∗∗_</sup>|-0.019<sup>_∗∗∗_</sup>|0.002|
|NR x N-Int|-0.009|-0.003|-0.007<sup>_∗∗∗_</sup>|0.001|
|lnESTABLISH|-0.048<sup>_∗∗∗_</sup>|0.050<sup>_∗∗∗_</sup>|0.019<sup>_∗∗∗_</sup>|0.017<sup>_∗∗∗_</sup>|
|lnGDPE|0.359<sup>_∗_</sup>|2.018<sup>_∗∗∗_</sup>|1.780<sup>_∗∗∗_</sup>|0.355<sup>_∗∗∗_</sup>|
|lnGDPI|-0.715<sup>_∗∗∗_</sup>|-0.060|-0.122<sup>_∗_</sup>|0.099<sup>_∗∗∗_</sup>|
|lnDIST|0.690<sup>_∗∗∗_</sup>|-0.253<sup>_∗∗∗_</sup>|0.002|-0.656<sup>_∗∗∗_</sup>|
|No. of Observations|193479|507214|700693|962027|
|No. of Clusters|1056|3228|4284|5430|
|_χ_<sup>2</sup>|2458.018|15712.42|21064.075|55581.04|
|Prob _> χ_<sup>2</sup>|0.000|0.000|0.000|0.000|
|**_Panel B:_**|||||
|_Dependent Variable: _|_Exportjist_||||
|Rule of law|-0.218<sup>_∗∗∗_</sup>|-0.654<sup>_∗∗∗_</sup>|-0.387<sup>_∗∗∗_</sup>|-0.046|
|Rule of law x Inst-Int|0.440<sup>_∗∗∗_</sup>|0.616<sup>_∗∗∗_</sup>|0.742<sup>_∗∗∗_</sup>|0.093|
|lnH|0.132|-0.171|-0.099|-0.345<sup>_∗∗∗_</sup>|
|lnH x H-Int|0.084<sup>_∗_</sup>|0.040|-0.066<sup>_∗∗_</sup>|0.251<sup>_∗∗∗_</sup>|
|lnK|-0.333|-1.606<sup>_∗∗∗_</sup>|-0.406<sup>_∗∗_</sup>|-0.813<sup>_∗∗∗_</sup>|
|lnK x K-Int|-0.015|1.749<sup>_∗∗∗_</sup>|1.256<sup>_∗∗∗_</sup>|-1.416<sup>_∗∗∗_</sup>|
|NR|-0.003|-0.013<sup>_∗∗_</sup>|-0.004|-0.001|
|NR x N-Int|-0.010|-0.037<sup>_∗∗∗_</sup>|-0.021<sup>_∗∗∗_</sup>|-0.013<sup>_∗∗_</sup>|
|lnESTABLISH|-0.009|0.133<sup>_∗∗∗_</sup>|0.114<sup>_∗∗∗_</sup>|-0.005|
|lnGDPE|1.687<sup>_∗∗∗_</sup>|2.310<sup>_∗∗∗_</sup>|1.325<sup>_∗∗∗_</sup>|1.973<sup>_∗∗∗_</sup>|
|lnGDPI|0.266<sup>_∗∗_</sup>|0.104|0.445<sup>_∗∗∗_</sup>|0.172<sup>_∗∗∗_</sup>|
|No. of Observations|173911|126149|300059|420299|
|F-Statistic|30.953|14.856|40.484|30.173|
|Prob _>_ F-Statistic|0.000|0.000|0.000|0.000|
|R<sup>2</sup>|0.774|0.625|0.764|0.633|
| ̄_R_<sup>2</sup>|0.773|0.617|0.762|0.628|

_∗ ∗∗ ∗∗∗ p <_ 0 _._ 1, _p <_ 0 _._ 05, _p <_ 0 _._ 01. All regressions include exporter, importer, industry and year fixed effects and a constant, which are not reported. Standard errors are clustered by exporter-importer pair. The columns represent results for: within OECD trade (Columns 1), within non-OECD trade (Column 2), within region [OECD _↔_ OECD, non-OECD _↔_ non-OECD] trade (Column 3), and across region [OECD _↔_ non-OECD] trade (Column 4).

Our results are robust with regard to the effect on the intensive margin as well ( _Panel B_ ). The within OECD, within non-OECD or overall within region trade patterns are positively influenced by the quality of contracting institutions, and the effect favors the contractually more intensive sectors. The importance of institutions for the across region trade pattern is statistically insignificant albeit at the margin (with a p-value of 0.124). In general, the role of institutions is essential for both the trade within and the trade between regions at different levels of development.

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