An Empirical Study on Institutional Distance and Foreign Trade Flows of Our Country ——by Trade Gravity Model
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An Empirical Study on Institutional Distance and Foreign Trade Flows of Our Country ——by Trade Gravity Model
KAN Da-xue1, LV Lian-jv1, LUO Liang-wen2
（1.School of Economics and Trade, Nanchang Institute of Technology, Nanchang 330099, China; 2.Shool of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China）
Abstract The paper analyzes the effect institutional distance on China’s foreign trade flow with the panel data between 1996 to 2008. It is found that institutional distance has positive effect on China’s foreign trade flow while the square of institutional distance has negative effect on China’s foreign trade flow and the relationship between the institutional distance and China’s foreign trade flow takes U shape. Further empirical study is made on the sub-index of institutional distance to China’s foreign trade flows accordingly.
HAN Da-Hua,LV Lian-Ju,LUO Liang-Wen. An Empirical Study on Institutional Distance and Foreign Trade Flows of Our Country ——by Trade Gravity Model. Economic Survey, 2013, 1(2): 055.
2013, Vol. 1 
