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Explaining corruption: are open countries less corrupt?

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  • Roberta Gatti

    (The World Bank, Development Research Group, Washington DC, USA)

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    Abstract

    This paper analyses whether the presence of barriers to international trade and capital flows is associated with higher corruption. The evidence suggests that the main impact of trade barriers on corruption comes through the incentive to collusive behaviors between individuals and customs officials, rather than from the decreased foreign competition pressure on the domestic sector induced by restrictive trade policy. Interestingly, no clear association emerges between corruption and variables proxying for presence and intensity of controls on capital flows. Copyright © 2004 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/jid.1115
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

    Volume (Year): 16 (2004)
    Issue (Month): 6 ()
    Pages: 851-861

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    Handle: RePEc:wly:jintdv:v:16:y:2004:i:6:p:851-861

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    Web page: http://www3.interscience.wiley.com/journal/5102/home

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    1. Gatti, Roberta, 1999. "Corruption and trade tariffs, or a case for uniform tariffs," Policy Research Working Paper Series 2216, The World Bank.
    2. Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, Elsevier, vol. 69(2), pages 263-279, June.
    3. Banerjee, Abhijit V, 1997. "A Theory of Misgovernance," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1289-1332, November.
    4. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
    5. Francisco Rodriguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, National Bureau of Economic Research, Inc, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338 National Bureau of Economic Research, Inc.
    6. Ades, Alberto & Di Tella, Rafael, 1997. "National Champions and Corruption: Some Unpleasant Interventionist Arithmetic," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(443), pages 1023-42, July.
    7. Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
    8. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1203-50, November.
    9. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, . "The Quality of Government," Working Paper 19452, Harvard University OpenScholar.
    10. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(3), pages 681-712, August.
    11. International Monetary Fund, 1997. "Corruption and the Rate of Temptation," IMF Working Papers 97/73, International Monetary Fund.
    12. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, Elsevier, vol. 32(3), pages 363-394, December.
    13. Rafael Di Tella & Alberto Ades, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, American Economic Association, vol. 89(4), pages 982-993, September.
    14. Banerjee, A.V., 1997. "A Theory of Misgovernance," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 97-4, Massachusetts Institute of Technology (MIT), Department of Economics.
    15. Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank.
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    Cited by:
    1. Jensen, Nathan M. & Li, Quan & Rahman, Aminur, 2007. "Heard melodies are sweet, but those unheard are sweeter : understanding corruption using cross-national firm-level surveys," Policy Research Working Paper Series 4413, The World Bank.
    2. Subhayu Bandyopadhyay & Suryadipta Roy, 2007. "Corruption and trade protection: evidence from panel data," Working Papers, Federal Reserve Bank of St. Louis 2007-022, Federal Reserve Bank of St. Louis.
    3. Matthias Helble & Ben Shepherd & John S. Wilson, 2009. "Transparency and Regional Integration in the Asia Pacific," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 32(3), pages 479-508, 03.
    4. Branisa, Boris & Klasen, Stephan & Ziegler, Maria, 2013. "Gender Inequality in Social Institutions and Gendered Development Outcomes," World Development, Elsevier, Elsevier, vol. 45(C), pages 252-268.
    5. Baksi, Soham & Bose, Pinaki & Pandey, Manish, 2009. "The impact of liberalization on bureaucratic corruption," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 72(1), pages 214-224, October.
    6. Portugal-Perez, Alberto & Wilson, John S., 2009. "Why trade facilitation matters to Africa," World Trade Review, Cambridge University Press, Cambridge University Press, vol. 8(03), pages 379-416, July.
    7. Gueorguiev, Dimitar & Malesky, Edmund, 2012. "Foreign investment and bribery: A firm-level analysis of corruption in Vietnam," Journal of Asian Economics, Elsevier, Elsevier, vol. 23(2), pages 111-129.
    8. Branisa, Boris & Ziegler, Maria, 2011. "Reexamining the link between gender and corruption: The role of social institutions," Proceedings of the German Development Economics Conference, Berlin 2011 15, Verein für Socialpolitik, Research Committee Development Economics.
    9. Helble, Matthias & Shepherd, Ben & Wilson, John S., 2007. "Transparency, trade costs, and regional integration in the Asia Pacific," Policy Research Working Paper Series 4401, The World Bank.

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