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Corruption and International Trade: An Empirical Investigation of African Countries

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  • Jacob Wanjala Musila
  • Simon Pierre Sigué
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    Abstract

    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. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal World Economy.

    Volume (Year): 33 (2010)
    Issue (Month): 1 (01)
    Pages: 129-146

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    Handle: RePEc:bla:worlde:v:33:y:2010:i:1:p:129-146

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    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920

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    Cited by:
    1. Roy Cerqueti & Raffaella Coppier & Gustavo Piga, 2011. "Corruption, Growth and Ethnic Fractionalization: a Theoretical Model," CEIS Research Paper 216, Tor Vergata University, CEIS, revised 08 Nov 2011.
    2. Oxana Babecka Kucharcukova & Jan Babecky & Martin Raiser, 2010. "A Gravity Approach to Modelling International Trade in South-Eastern Europe and the Commonwealth of Independent States: The Role of Geography, Policy and Institutions," Working Papers 2010/04, Czech National Bank, Research Department.
    3. Oxana Babecká Kucharčuková & Jan Babecký & Martin Raiser, 2012. "Gravity Approach for Modelling International Trade in South-Eastern Europe and the Commonwealth of Independent States: The Role of Geography, Policy and Institutions," Open Economies Review, Springer, vol. 23(2), pages 277-301, April.

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