IDEAS home Printed from https://ideas.repec.org/p/fau/wpaper/wp2020_28.html
   My bibliography  Save this paper

Does Enforcement Of the Rules Against Foreign Bribery Discourage Exports? A Case of the OECD Anti-Bribery Convention

Author

Listed:
  • Michal Paulus

    (Faculty of Social Sciences, Charles University, Prague, Czech Republic)

  • Jaromir Baxa

    (Faculty of Social Sciences, Charles University & The Czech Academy of Sciences, Institute of Information Theory and Automation, Prague, Czech Republic)

  • Eva Michalikova

    (Brno Institute of Informatics, Faculty of Business and Management,Brno University of Technology,Brno, Czech Republic)

Abstract

Although the OECD Anti-Bribery Convention has been signed by dozens of countries, only some of themenforce the laws against foreign bribery. To estimate whether the enforcement deters exports, we use amicrofounded gravity model of bilateral trade flows of 132 countries. Our results imply that enforcement ofthe rules decreases the export flows to countries with a higher corruption distance significantly, particularlyin product categories characterized by differentiated goods. Moreover, the effects of the host-countrycorruption on exports of the nonenforcing countries are limited, and similar to the impact on the exports from countries that did not sign the Convention at all. Therefore, the main aim of the Convention to level the field in international trade has not been reached yet, even among the signatory countries.

Suggested Citation

  • Michal Paulus & Jaromir Baxa & Eva Michalikova, 2020. "Does Enforcement Of the Rules Against Foreign Bribery Discourage Exports? A Case of the OECD Anti-Bribery Convention," Working Papers IES 2020/28, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Aug 2020.
    • Handle: RePEc:fau:wpaper:wp2020_28
    as

    Download full text from publisher

    File URL: https://ies.fsv.cuni.cz/en/veda-vyzkum/working-papers/6275
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Corruption; International trade; Gravity model;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:wpaper:wp2020_28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.