This research examines the connection between a country’s export structure and corruption, incorporating disaggregated data on exports for a recent time period over a large set of nations. We ask whether various types of exports (e.g. agricultural, mineral, manufacturing and fuel) exert similar influences on corruption across nations. Our results suggest that corruption decreases as nations attain prosperity, as economic and political freedoms increase, and with a larger government size. Ceteris paribus, transition countries are also found to be more corrupt. Ethnic and linguistic fractionalizations exert opposite influences on corruption, while religious fractionalization does not seem to matter. Although the effects of ore and manufacturing exports are statistically insignificant, agricultural and fuel exports affect corruption significantly. Our findings for fuel exports support previous research, as well as uniquely demonstrate that the impact of fuel exports is sensitive to the prevailing corruption level. We conclude with a discussion of policy implications.
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Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number
5/2009.
Length: 28 pages Date of creation: 01 Jul 2009 Date of revision: Handle: RePEc:hhs:bofitp:2009_005
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Find related papers by JEL classification: H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
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