Institutional Quality and Trade Competitiveness in ASEAN Region: Implication for Inclusive and Sustainable Development

Abstract

This study examined institutional quality and trade competitiveness in the Association of Southeast Asian Nations (ASEAN) using panel data and a fixed effect model. It was revealed that while control of corruption, government effectiveness, and political stability, absence of violence and terrorism significantly encourage trade competitiveness by about 33.126%, 91.958%, and 55.004%, weak regulatory quality, rule of law, and lack of voice and accountability significantly discourage trade competitiveness by about 25.331%, 95.599%, and 7.561%. ASEAN governments and their citizens should strive harder to effectively run all-inclusive and democratic governments, encourage strong regulatory quality, impartial rule of law, and voice and accountability.