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Corruption and International Trade: An Empirical Investigation of African Countries

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  • Jacob Wanjala Musila
  • Simon Pierre Sigué

Abstract

This paper attempts to estimate the effect of corruption on the flows of exports and imports of African countries. Using the gravity model approach and annual data for the period 1998–2007, we obtain negative and statistically significant correlations between the values of exports and imports and the levels of corruption in Africa and trading partners. Thus the results support the view that corruption adversely affects international trade. Our estimates suggest that if a country with Africa’s average corruption perception index of 2.8 were to improve its corruption level to Botswana’s 5.9, its exports would improve by about 15 per cent and imports by about 27 per cent.

Suggested Citation

  • Jacob Wanjala Musila & Simon Pierre Sigué, 2010. "Corruption and International Trade: An Empirical Investigation of African Countries," The World Economy, Wiley Blackwell, vol. 33(1), pages 129-146, January.
    • Handle: RePEc:bla:worlde:v:33:y:2010:i:1:p:129-146
    DOI: 10.1111/j.1467-9701.2009.01208.x
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    References listed on IDEAS

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