Corruption and International Trade: An Empirical Investigation of African Countries
AbstractAbstract 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 InfoArticle provided by Wiley Blackwell in its journal World Economy.
Volume (Year): 33 (2010)
Issue (Month): 1 (01)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920
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- 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, Springer, vol. 23(2), pages 277-301, April.
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CEIS Research Paper, Tor Vergata University, CEIS
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- 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, Czech National Bank, Research Department 2010/04, Czech National Bank, Research Department.
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