Business Intelligence

Does Governance Matter For Enhancing Trade? Empirical Evidence From Asia

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Executive Summary

The primary objective of this paper is to find whether or not the governance and institutions matter for enhancing Asia's trade. In this study, the authors have performed a comprehensive empirical analysis of the linkages between governance and trade at the Asian sub-regional level. These results indicate that all individual governance indicators except regulatory quality have significant impact on trade in Asia, of which government effectiveness is the most crucial for Asia's trade promotion. One of the conclusions of this paper is that soft infrastructure such as the institutions and governance are important for enhancing Asia's trade. In other words, good governance and institutions help unlock trade potential of a region (or a nation).

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