This paper theoretically examines how country-specific formal and informal institutions are interrelated through international trade within a two-country general-equilibrium framework. When formal and informal institutions collectively generate institutional quality, formal institutions endogenously arise based on exogenously given informal institutions. Institutional quality governs the productivity of an institutionally intensive sector that features increasing returns. I find that in open economies, formal institutions tend to improve with the quality of informal institutions. In contrast, under autarky, formal institutions deteriorate with informal institutional quality. These results reveal that trade opens up the opportunity for enhancing formal institutions of countries with rich informal institutions.

中文翻译：

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通过国际贸易的正式和非正式制度之间的相互关系

本文从理论上探讨了特定国家的正式和非正式制度如何通过两国一般均衡框架内的国际贸易相互关联。当正式和非正式制度共同产生制度质量时，正式制度就会基于外生给定的非正式制度而内生地产生。制度质量控制着以收益递增为特征的制度密集部门的生产力。我发现在开放经济体中，正式制度往往会随着非正式制度的质量而提高。相比之下，在自给自足的情况下，正式制度随着非正式制度的质量而恶化。这些结果表明，贸易为加强具有丰富非正式制度的国家的正式制度提供了机会。