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Lower Corruption Warrants Less, but Higher Corruption Removes it: A Ricardian Note

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  • Biswajit Mandal

    (Visva-Bharati University)

Abstract

This short note uses a textbook kind competitive Ricardian model to check if any change in institutional factor reflecting corruption related intermediation may lead to apparently surprising outcome. I use the idea of finite change in international trade theory to argue how raising the degree of corruption related intermediation cost eventually removes corruption from the system. So, an initial surge in the cost of corruption may turn out to be a welcome change.

Suggested Citation

  • Biswajit Mandal, 2022. "Lower Corruption Warrants Less, but Higher Corruption Removes it: A Ricardian Note," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(2), pages 479-486, June.
    • Handle: RePEc:spr:jqecon:v:20:y:2022:i:2:d:10.1007_s40953-022-00287-x
    DOI: 10.1007/s40953-022-00287-x
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    References listed on IDEAS

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    1. Oguzhan C. Dincer & Burak Gunalp, 2012. "Corruption And Income Inequality In The United States," Contemporary Economic Policy, Western Economic Association International, vol. 30(2), pages 283-292, April.
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    3. Dobson, Stephen & Ramlogan-Dobson, Carlyn, 2012. "Why is Corruption Less Harmful to Income Inequality in Latin America?," World Development, Elsevier, vol. 40(8), pages 1534-1545.
    4. Ronald Findlay & Ronald W. Jones, 2018. "Factor Bias and Technical Progress," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 11, pages 167-173, World Scientific Publishing Co. Pte. Ltd..
    5. Antonio Andres & Carlyn Ramlogan-Dobson, 2011. "Is Corruption Really Bad for Inequality? Evidence from Latin America," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 959-976.
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    7. Ronald W. Jones, 2018. "The Structure of Simple General Equilibrium Models," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 4, pages 61-84, World Scientific Publishing Co. Pte. Ltd..
    8. Biswajit Mandal & Sugata Marjit, 2012. "Capital inflow, vanishing sector and wage distribution in an economy with corruption related intermediation," Economics Bulletin, AccessEcon, vol. 32(3), pages 2128-2135.
    9. Shang-Jin Wei, 1997. "Why is Corruption So Much More Taxing Than Tax? Arbitrariness Kills," NBER Working Papers 6255, National Bureau of Economic Research, Inc.
    10. Mandal, Biswajit & Marjit, Sugata, 2010. "Corruption and wage inequality?," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 166-172, January.
    11. Sugata Marjit & Biswajit Mandal, 2012. "Domestic trading costs and pure theory of international trade," International Journal of Economic Theory, The International Society for Economic Theory, vol. 8(2), pages 165-178, June.
    12. Pi, Jiancai & Zhou, Yu, 2013. "Institutional quality and skilled–unskilled wage inequality," Economic Modelling, Elsevier, vol. 35(C), pages 356-363.
    13. Jones, Ronald W., 1996. "International trade, real wages, and technical progress: The specific-factors model," International Review of Economics & Finance, Elsevier, vol. 5(2), pages 113-124.
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    Cited by:

    1. Mandal, Biswajit & Roy Bardhan, Arya, 2023. "Controlling Environmental Pollution, Sectoral Composition and Factor Prices: A H-O and SFM Hybrid Approach," MPRA Paper 116961, University Library of Munich, Germany.

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    More about this item

    Keywords

    International trade; Ricardian model; Corruption; F1; F11; D73;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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