Domestic Institutions as a Source of Comparative Advantage

Nathan Nunn; Daniel Trefler

doi:10.3386/w18851

Domestic Institutions as a Source of Comparative Advantage

Nathan Nunn & Daniel Trefler

Working Paper 18851

DOI 10.3386/w18851

Issue Date February 2013

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

The authors thank Marianna Belloc, Samuel Bowles, Davin Chor, David Donaldson, Andrei Levchenko, Elhanan Helpman and Thierry Mayer for valuable comments. Trefler gratefully acknowledges the support of the Social Sciences and Humanities Research Council of Canada The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
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Domestic Institutions as a Source of Comparative Advantage

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