The Empirical Investigation on The Relationship of Foreign Trade, Institutions and Economic Performance of The ASEAN Nations – The Data

In this paper, the panel dataset is adopted since this is the panel analysis. The observations from 1980 till 2010 are observed. The major data sources in this paper are the Worldwide Governance Indicators and the World Development Indicator of the World Bank, the database of the Asian Development Bank (ADB). The above table shows the descriptive statistics of selected variables in this paper. The raw data is drawn from the WDI of World Bank and some is from ADB. The calculation is based on STATA statistical software.
Definitions of the Selected Variables
Several variables related to institutional indicators, financial development and economic development are collected to use in this paper. Those variables and their definitions and sources of data are shown as follows:
–    Gross domestic product, in (log): This variable is collected from the World Development Indicator of the World Bank. According the data source, it is defined as the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in 2000 U.S. dollars.
–    Capital, in (log): In this paper, I adopt the Gross Fixed Capital Formation to be used here. The data is also collected from the World Development Indicator of the World Bank. It is comprised of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. The data is measured in current U.S. dollars.
–    Economically employed labor, in (log) is collected from the WDI and ADB statistics. The data is measured in number of people employed in agricultural, manufacturing, mining and other sectors in economy.
–    Domestic Credit to Private Sector is generally defined by the WDI as the financial resources provided to the private sector, such as through loans, purchases of non-equity securities, and trade credits and other accounts receivable, that establish a claim for repayment. This variable is valued in % to GDP.
–    Domestic Credit provided by Banking Sector includes all credit to various sectors on a gross basis, with the exception of credit to the central government, which is net. The data is in % of GDP.
–    Trade, in (log) is the sum of total export and import of a country in a year. The data is measured in current US dollar.
The Worldwide Governance Indicators (WGI), The ADB Institute and Jansen and Nordas (n.d.) have defined the governance indicators which I use in this paper as follows:
–    Rule of Law takes the number from -2.5 to 2.5. It is defined as the extent to which agents have confidence in and abide by the rules o society, and in particular the quality of contrast enforcement, the police, and the courts, as well as the likelihood of crime and violence.
–    Government Effectiveness is stated as the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitment to such policies. It also takes the value from -2.5 to 2.5.
–    Political Stability and absence of violence is defined by the data sources as the perceptions of the likelihood that government will be destabilized or overthrown by unconstitutional or violent means, including political violence and terrorism. It takes the value from -2.5 to 2.5.
–    Accountability and Voice is here defined as the extent to which a country’s citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association, and fee media. It takes the value from -2.5 to 2.5.