Abstract

The objectives of this study are to examine the impact of environment, institutions and corruption on trade in developing countries. For this purpose, the study considers 37 developing countries and data from 1990 to 2021 has been used in this study and it is collected from World Development Indicators and the study has utilized the index for institutions and eight governance indicators developed by World Governance Indicators. Generalized method of moments (GMM) is employed on the panel data for estimation of econometric results. The results conclude that environment and institutions have positive effects on trade while corruption has negative effect on trade in developing countries.

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