The Impacts of Institutions on International Trade in Ghana’s Economic Perspective

Abstract

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.