An Investigation of Institutional Quality Conditions and the Export of Intermediate Goods by Developing Countries

The present study aimed to investigate the effects of institutional quality on the export of intermediate goods3 by developing countries according to good, moderate, and bad institutional quality conditions. the institutional variable included the world bank’s average good governance index. the estimation of the model was carried out using panel data for 1997-2018 on a sample of 131 developing countries by the application of the estimated generalized least squares (egls) method. the findings showed that institutional quality only influenced the mutual exports of the pairs of developing counties that had rather similar institutional quality conditions. thus, the governments of developing countries having moderate governance conditions need to prioritize development and extensive reforms concerning institutional development to increase their exports of intermediate goods.