Domestic Institutions as a Source of Comparative Advantage
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.
Handbook of International Economics Volume 4, 2014, Pages 263–315 Handbook of International Economics Cover image Chapter 5 – Domestic Institutions as a Source of Comparative Advantage * Nathan Nunna, b, Daniel Treflerb, c