The effect of political institutions on Iranian export using spatial econometric approach (Case study: Association of Southeast Asian Nations (ASEAN)

摘要

Trade plays an important role in dynamism and economic growth of countries. Most countries seek to develop trade with other countries and produce goods on the basis of comparative advantage in order to enhance economic growth. Various factors are effective on export value of Iran that it seems leading institutional indexes which can provide suitable conditions to develop export markets in Iran are highly important. In this paper, the effect of political institutions on Iran's export to trading partners in the Association of Southeast Asian Nations is explored and analyzed empirically during the time period 2000-2015 via spatial econometric approach. The research model is a regression model with panel data based on various product groups at HS-6 Digit Level of Iranian trade with the Association of Southeast Asian Nations. According to research findings, a decreased limitation of exchange of goods that illustrates facilitator political institutions of exportation has positive and significant effects on Iran's export. Countries with better institutional quality have fewer limitations for export; this characteristic reduces transaction costs and provides better conditions for increased export.