Trade reform in a corrupt economy : A note
AbstractWe construct a general equilibrium model and analyze the effectiveness of trade reform in a distorted economy where distortion exists in form of bureaucratic corruption that arises because of trade protection at the border. In this kleptocratic set up, intermediaries are employed in order to run off from paying a part of import tariff. We use HOSV kind of framework to prove that whether trade liberalization necessarily helps reducing corruption activities and to check what happens to the production of commodities.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18811.
Date of creation: Jul 2009
Date of revision:
Corruption; International Trade; Tariff Reform; General Equilibrium;
Find related papers by JEL classification:
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F1 - International Economics - - Trade
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- James E. Anderson & Eric van Wincoop, 2001.
"Borders, Trade and Welfare,"
NBER Working Papers
8515, National Bureau of Economic Research, Inc.
- Krueger, Anne O, 1998. "Why Trade Liberalisation Is Good for Growth," Economic Journal, Royal Economic Society, vol. 108(450), pages 1513-22, September.
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- Greenaway, David & Morgan, Wyn & Wright, Peter W, 1998. "Trade Reform, Adjustment and Growth: What Does the Evidence Tell Us?," Economic Journal, Royal Economic Society, vol. 108(450), pages 1547-61, September.
- Mandal, Biswajit, 2009. "Would Recession Induce More Intermediation in the Corrupt Informal Sector?," MPRA Paper 19930, University Library of Munich, Germany, revised 10 Jan 2010.
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