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The Multifaceted Impact of Corruption on International Trade

Thede, Susanna LU and Gustafson, Nils-Åke (2009)
Abstract
The purpose of this paper is to perform a detailed examination of corruption effects on trade

based on corruption characteristics known to affect economic exchange within the corruption

research field. These characteristics are the level, prevalence, customs location, function and

predictability of corruption. The multifaceted corruption impact on trade is empirically

examined using a corruption-augmented gravity equation. The equation is estimated using a

Heckman version of a GMM instrumental variable method. Our results provide strong

evidence of that import flows vary systematically with the investigated corruption

characteristics and enable the identification of... (More)
The purpose of this paper is to perform a detailed examination of corruption effects on trade

based on corruption characteristics known to affect economic exchange within the corruption

research field. These characteristics are the level, prevalence, customs location, function and

predictability of corruption. The multifaceted corruption impact on trade is empirically

examined using a corruption-augmented gravity equation. The equation is estimated using a

Heckman version of a GMM instrumental variable method. Our results provide strong

evidence of that import flows vary systematically with the investigated corruption

characteristics and enable the identification of channels through which corruption affects

international trade. The empirical investigation clearly indicates the need to examine the

multifaceted role of corruption to properly assess the trade effects of corruption. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
in press
subject
keywords
F10, K40, D73
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
abec77b4-5554-400f-abc5-e662df6d0528 (old id 1763297)
date added to LUP
2011-01-18 14:39:05
date last changed
2016-10-11 08:32:11
@misc{abec77b4-5554-400f-abc5-e662df6d0528,
  abstract     = {The purpose of this paper is to perform a detailed examination of corruption effects on trade <br/><br>
based on corruption characteristics known to affect economic exchange within the corruption <br/><br>
research field. These characteristics are the level, prevalence, customs location, function and <br/><br>
predictability of corruption. The multifaceted corruption impact on trade is empirically <br/><br>
examined using a corruption-augmented gravity equation. The equation is estimated using a <br/><br>
Heckman version of a GMM instrumental variable method. Our results provide strong <br/><br>
evidence of that import flows vary systematically with the investigated corruption <br/><br>
characteristics and enable the identification of channels through which corruption affects <br/><br>
international trade. The empirical investigation clearly indicates the need to examine the <br/><br>
multifaceted role of corruption to properly assess the trade effects of corruption.},
  author       = {Thede, Susanna and Gustafson, Nils-Åke},
  keyword      = {F10,K40,D73},
  language     = {eng},
  publisher    = {ARRAY(0xa760e80)},
  title        = {The Multifaceted Impact of Corruption on International Trade},
  year         = {2009},
}