The results are sormewhat better when considering the value of trading abroad
relative to the GDP, a variable that does not combine the aspects of the degree trading in
general in the country with the value of migration of trading. Here, inflation decreases
and shareholder rights increases the relative value of shares traded abroad. Also, greater
financial liberalization higher trading costs lead to more trading abroad. The capital
account liberalization is not statistically significant. It maybe that by taking trading
abroad as a ratio to GDP that this measure is less sensitive to the large institutional
differences across countries affecting the degree of domestic trading.