The Impact of Corruption on the Black Market Premium
AbstractRecently the impact of institutional factors on macro variables has been gaining momentum. Researchers have investigated the impact of corruption, law and order, and bureaucracy on economic growth, inflation, investment, productivity, and the real exchange rate. In this article, we investigate empirically the impact of institutional factors on the black market premium. In many developing nations, because of government restrictions on capital and trade flows, there exists a black market for foreign exchange. By using data from 60 developing countries over the 1982–1995 period, we show that the black market premium is higher in countries that are plagued by more corruption. This finding seems to be insensitive to five different measures of corruption as well as whether cross-section or panel data are used.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Southern Economic Association in its journal Southern Economic Journal.
Volume (Year): 71 (2005)
Issue (Month): 3 (January)
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- Z10 - Other Special Topics - - Cultural Economics - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- John Dawson & Steven Millsaps & Mark Strazicich, 2004. "Trend Breaks and Seasonality in the Yugoslav Black Market for Dollars, 1974-1987," Working Papers 04-04, Department of Economics, Appalachian State University, revised 2005.
- Muhammad, Shahbaz & Qazi, Muhammad Adnan Hye & Muhammad, Shahbaz Shabbir, 2011. "Does Corruption Increase Financial Development? A Time Series Analysis in Pakistan," MPRA Paper 29640, University Library of Munich, Germany, revised 10 Mar 2011.
- Abdul Farooq & Muhammad Shahbaz & Mohamed Arouri & Frédéric Teulon, 2014.
"Does corruption impede economic growth in Pakistan ?,"
2014-364, Department of Research, Ipag Business School.
- Farooq, Abdul & Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2013. "Does corruption impede economic growth in Pakistan?," Economic Modelling, Elsevier, vol. 35(C), pages 622-633.
- John Dawson & Steven Millsaps & Mark Strazicich, 2007. "Trend breaks and non-stationarity in the Yugoslav black market for dollars, 1974-1987," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 43-51.
- SULIMAN, Osman, 2013. "Do Capital Inflows Cause Currency Black Markets In Mena Countries? Causality Tests For Heterogeneous Panels," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 187-202.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini).
If references are entirely missing, you can add them using this form.