Trade protection and bureaucratic corruption: an empirical investigation
AbstractWe examine whether protectionist trade policies lead to increased bureaucratic corruption. Using multiple measures of corruption and trade policies, we find strong evidence that corruption is significantly higher in countries with protectionist trade policies. These results are robust to endogeneity concerns. Next, a panel-data-based GMM methodology is used to estimate a dynamic model of corruption. This estimator controls for country-specific effects, potential endogeneity of trade policy, and existence of measurement errors afflicting the corruption data. The paper strengthens the case for trade liberalization and argues that trade reforms may lead to improvements in governance.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 42 (2009)
Issue (Month): 1 (February)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
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Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
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- Van-Ha Le & Jakob de Haan & Erik Dietzenbacher, 2013. "Do Higher Government Wages Reduce Corruption? Evidence Based on a Novel Dataset," CESifo Working Paper Series 4254, CESifo Group Munich.
- Felipe Starosta de Waldemar, 2010.
"How costly is rent-seeking to diversification : an empirical approach,"
Documents de travail du Centre d'Economie de la Sorbonne
10008, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Felipe Starosta De Waldemar, 2010. "How costly is rent-seeking to diversification : an empirical approach," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00461486, HAL.
- Starosta de Waldemar, Felipe, 2010. "How costly is rent-seeking to diversification: an empirical approach," Proceedings of the German Development Economics Conference, Hannover 2010 4, Verein für Socialpolitik, Research Committee Development Economics.
- Shepherd, Ben, 2009. "Speed Money: Time, Corruption, and Trade," MPRA Paper 17337, University Library of Munich, Germany.
- Carlos Felipe Jaramillo & Daniel Lederman & Maurizio Bussolo & David Gould & Andrew Mason, 2006. "Challenges of CAFTA : Maximizing the Benefits for Central America," World Bank Publications, The World Bank, number 7127, March.
- James Fenske, 2012.
"Ecology, Trade and States in Pre-Colonial Africa,"
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WPF/2012-18, University of Oxford, Department of Economics.
- James Fenske, 2012. "Ecology, trade and states in pre-colonial Africa," CSAE Working Paper Series 2012-18, Centre for the Study of African Economies, University of Oxford.
- Fenske, James, 2010. "Ecology, trade and states in pre-colonial Africa," MPRA Paper 27203, University Library of Munich, Germany.
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