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The Multifaceted Impact of Corruption on International Trade

Thede, Susanna LU and Gustafson, Nils-Åke (2012) In World Economy 35(5). p.651-666
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 channels through which corruption affects international trade. The... (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)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
World Economy
volume
35
issue
5
pages
651 - 666
publisher
Wiley-Blackwell
external identifiers
  • wos:000303598200006
  • scopus:84860568169
ISSN
1467-9701
DOI
10.1111/j.1467-9701.2012.01436.x
language
English
LU publication?
yes
id
d829731d-3dff-4e30-90c3-1f88b1554e14 (old id 2799110)
date added to LUP
2012-06-19 11:35:08
date last changed
2017-03-26 04:06:53
@article{d829731d-3dff-4e30-90c3-1f88b1554e14,
  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 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.},
  author       = {Thede, Susanna and Gustafson, Nils-Åke},
  issn         = {1467-9701},
  language     = {eng},
  number       = {5},
  pages        = {651--666},
  publisher    = {Wiley-Blackwell},
  series       = {World Economy},
  title        = {The Multifaceted Impact of Corruption on International Trade},
  url          = {http://dx.doi.org/10.1111/j.1467-9701.2012.01436.x},
  volume       = {35},
  year         = {2012},
}