ISSN: 2226-3624
Open access
The capacity of institutions in promoting the course of international trade and economic growth has been a dilemma and a discourse among trade economist. Since 1957, when Ghana attained her independence, the potential role of institutions in affecting her multilateral trade flows has been remarkably tremendous. This study empirically investigates the impacts of institutions on international trade in Ghana’s economic perspective. The econometric tool employed in the study is the Ordinary Least Squares (OLS) technique. The results revealed that business freedom and freedom from corruption has no significant effects on Ghana’s trade, however, property rights, monetary freedom, trade freedom and exchange rate exhibit great robust influence on trade in Ghana’s economic perspective.
It is recommended that the economic institutions and all the auxiliary sectors in supporting and promoting the course of Ghana’s trade should be strengthen and focused so as to enhanced and maximize the potential gains from international trade.
1. Andrew, K. R. (2000). One Money, One Market: Estimating the Effect of Common Currencies on Trade, Econ. Policy, vol. 15, no. 30, pp. 7–45.
2. Acemoglu, D., Johnson, S., & Robinson, J.A. (2001), The Colonial Origins of Comparative Development: An Empirical Investigation, American Economic Review, 91(5):1369-1401.
3. Depken,, I.I. & Sonora, R.. J (2005). Asymmetric effects of economic freedom on international trade flows, Int. J. Bus. Econ., vol. 4, no. 2, p. 141.
4. Chong, A., Calderon, C. (2000). Causality and feedback between institutional measures and economic growth. Economics and Politics 12, 69—81.
5. North Cecil Douglass (1991). Institutions. Journal of Economic Perspectives 5, no. 1: 97—112.
6. Easterly, W., Levine, R. & Roodma, D. (2004), Aid, policies, and growth: comment, American Economic Review, Vol. 94 No. 3, pp. 774-80.
7. Marcouiller, D. & Anderson, J. E. (2002). Insecurity and the Pattern of Trade: An Empirical Investigation, Rev. Econ. Stat., vol.84, no. 2, pp. 342–352.
8. Hussain, L. I., Mohammad, D. S. (2009) Effectiveness of Government Expenditure Crowding-In or Crowding-Out: Empirical Evidence in Case of Pakistan,” Econ. Financ. Adm. Sci., vol. 16, no. 16, p. 7.
9. Lant, P.. (1997). Divergence, Big Time, J. Econ. Perspect., vol. 11, no. 3, pp. 3–17.
10. Law, S. H., Lim, T. C., & Ismail, N. W. (2013). Institutions and economic development: A Granger causality analysis of panel data evidence. Economic Systems, 37(4), 610-624.
11. Ali, N. & Mingque, Y. (2018). Role of institutions in affecting the course of international trade in Pakistan. American Journal of Economics 2018, 8(1): 18-22. DOI: 10.5923/j.economics.20180801.04
12. Aghion, P. & Howitt, P. (1992) A model of growth through creative destruction, Econometrica, vol. 60, no. 2, pp. 323–351.
13. Milgrom, P. R. D. C. & Weingast, B. R. (1990). The Role of Institutions in the Revival of Trade: The Law Merchant,
14. Rohini, P. & Udry, C. (2005) Institutions and Development: A View from Below, Work. Pap. Yale Sch. Manag. Econ. Res. Netw., pp. 31–61.
15. Private Judges, and The Champagne Fairs, Econ. Polit., vol. 2, no. 1, pp. 1–23.
16. Parente, S. L. & Prescott, E. C. (2005). A Unified Theory of the Evolution of International Income Levels.
17. Solow Robert Merton. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics. Oxford Journals. 70 (1): 65–94. doi:10.2307/1884513. JSTOR 1884513.
18. World Bank (2018) Africa report. Retrieved online at https://qz.com/africa/1179387/africas-economic-outlook-is-promising-for-2018-but-there-clouds-on-the-horizon/.
In-Text Citation: (Abasimi, Li, & Khan, 2018)
To Cite this Article: Abasimi, I., Li, X., & Khan, M. I. (2018). The Impacts of Institutions on International Trade in Ghana’s Economic Perspective. International Journal of Academic Research in Economics and Management Sciences, 7(4), 32–43.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode