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Corruption and assortative matching of partners in international trade

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  • Arusha Cooray
  • Chandan Kumar Jha
  • Bibhudutta Panda

Abstract

While the effects of corruption on bilateral trade have been relatively well explored, its effect on the composition of trading partners has not been studied. In this paper, we argue that corruption in a country is likely to impose asymmetric costs on its trading partners depending on their characteristics. As a result, as the level of corruption in a country changes, its trade flows from some of its trading partners change more than others depending on the latter's characteristics, causing a change in the composition of its trading partners.

Suggested Citation

  • Arusha Cooray & Chandan Kumar Jha & Bibhudutta Panda, 2020. "Corruption and assortative matching of partners in international trade," WIDER Working Paper Series wp-2020-114, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-114
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    Cited by:

    1. Dirk-Jan Koch, 2022. "Do transactions to tax havens and corruption attract officially supported export credit? Evidence from three European export credit agencies," SN Business & Economics, Springer, vol. 2(6), pages 1-21, June.
    2. Jha, Chandan Kumar & Panda, Bibhudutta & Sahu, Santosh Kumar, 2022. "Institutions and conflict," Economic Modelling, Elsevier, vol. 113(C).
    3. Kodila-Tedika, Oasis & Khalifa, Sherif, 2021. "Do Leader’s Visits Increase Trade Flows?," MPRA Paper 105577, University Library of Munich, Germany.

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    More about this item

    Keywords

    Corruption; international bribery; International trade; OECD Convention;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • K20 - Law and Economics - - Regulation and Business Law - - - General

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