Leder korruption till minskad handel? Skiljer sig effekten om exportlandet är ett höginkomstland eller ett icke-höginkomstland?
(2020) NEKH02 20192Department of Economics
- Abstract
- Corruption has for long been seen as a major obstacle to economic and social development, but nowadays also for international trade. The cost of corruption affects an economy in many ways and is based on increased uncertainty, weak institutions and the misuse of public power for private gain. By using gravity models and measuring corruption with Corruption Perceptions Index, this study aims to find out if corruption leads to a reduction on exports and also if the effect is different between high and low-middle income exporters. The empirical part of this study contains panel data for 218 countries with over 14 000 observations between 2005-2016. The importing countries represent all 28 members of the European Union and the rest of the... (More)
- Corruption has for long been seen as a major obstacle to economic and social development, but nowadays also for international trade. The cost of corruption affects an economy in many ways and is based on increased uncertainty, weak institutions and the misuse of public power for private gain. By using gravity models and measuring corruption with Corruption Perceptions Index, this study aims to find out if corruption leads to a reduction on exports and also if the effect is different between high and low-middle income exporters. The empirical part of this study contains panel data for 218 countries with over 14 000 observations between 2005-2016. The importing countries represent all 28 members of the European Union and the rest of the world's countries represent our exporters. By using gravity models we can estimate with OLS to answer our questions. Our results are significant and show that by lowering the level of corruption exports will increase which means that corruption has a negative effect on trade. Also that there is a small difference in effect if our exporting country is a low-middle country compared to a high income country. (Less)
- Popular Abstract
- Corruption has for long been seen as a major obstacle to economic and social development, but nowadays also for international trade. The cost of corruption affects an economy in many ways and is based on increased uncertainty, weak institutions and the misuse of public power for private gain. By using gravity models and measuring corruption with Corruption Perceptions Index, this study aims to find out if corruption leads to a reduction on exports and also if the effect is different between high and low-middle income exporters. The empirical part of this study contains panel data for 218 countries with over 14 000 observations between 2005-2016. The importing countries represent all 28 members of the European Union and the rest of the... (More)
- Corruption has for long been seen as a major obstacle to economic and social development, but nowadays also for international trade. The cost of corruption affects an economy in many ways and is based on increased uncertainty, weak institutions and the misuse of public power for private gain. By using gravity models and measuring corruption with Corruption Perceptions Index, this study aims to find out if corruption leads to a reduction on exports and also if the effect is different between high and low-middle income exporters. The empirical part of this study contains panel data for 218 countries with over 14 000 observations between 2005-2016. The importing countries represent all 28 members of the European Union and the rest of the world's countries represent our exporters. By using gravity models we can estimate with OLS to answer our questions. Our results are significant and show that by lowering the level of corruption exports will increase which means that corruption has a negative effect on trade. Also that there is a small difference in effect if our exporting country is a low-middle country compared to a high income country. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9001586
- author
- Lundmark, Olivia LU and Berndtsson, Filip LU
- supervisor
- organization
- alternative title
- Does corruption led to a reduction in trade? Does the effect differ if the exporting country is a high-income country or a non-high-income country?
- course
- NEKH02 20192
- year
- 2020
- type
- M2 - Bachelor Degree
- subject
- keywords
- Corruption, Gravity model, International Trade, High income countries, Low income countries
- language
- Swedish
- id
- 9001586
- date added to LUP
- 2020-02-25 10:59:08
- date last changed
- 2020-02-25 10:59:08
@misc{9001586,
abstract = {{Corruption has for long been seen as a major obstacle to economic and social development, but nowadays also for international trade. The cost of corruption affects an economy in many ways and is based on increased uncertainty, weak institutions and the misuse of public power for private gain. By using gravity models and measuring corruption with Corruption Perceptions Index, this study aims to find out if corruption leads to a reduction on exports and also if the effect is different between high and low-middle income exporters. The empirical part of this study contains panel data for 218 countries with over 14 000 observations between 2005-2016. The importing countries represent all 28 members of the European Union and the rest of the world's countries represent our exporters. By using gravity models we can estimate with OLS to answer our questions. Our results are significant and show that by lowering the level of corruption exports will increase which means that corruption has a negative effect on trade. Also that there is a small difference in effect if our exporting country is a low-middle country compared to a high income country.}},
author = {{Lundmark, Olivia and Berndtsson, Filip}},
language = {{swe}},
note = {{Student Paper}},
title = {{Leder korruption till minskad handel? Skiljer sig effekten om exportlandet är ett höginkomstland eller ett icke-höginkomstland?}},
year = {{2020}},
}