Corruption and Trade Protection: Evidence from Panel Data
AbstractWe complement the existing literature on corruption and trade policy by providing new estimates of the effects of corruption (and institutions) on trade protection. We control for unobserved heterogeneity among countries with properly specified fixed effects, exploiting the time dimension present in the dataset. The issue of endogeneity of corruption with respect to trade policy is addressed. Furthermore, two separate institutional measures are used in the same regression to estimate their comparative impacts on trade policy. The central finding is that corruption and lack of contract enforcement significantly increase trade protection and have negative effects on trade openness.
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Bibliographic InfoPaper provided by Department of Economics, West Virginia University in its series Working Papers with number 06-11 Classification- JEL: F1; F13.
Length: 23 pages
Date of creation: 2006
Date of revision:
Corruption; Trade Policy; Contract Enforcement; Endogenous Tariffs.;
Other versions of this item:
- Subhayu Bandyopadhyay & Suryadipta Roy, 2007. "Corruption and trade protection: evidence from panel data," Working Papers 2007-022, Federal Reserve Bank of St. Louis.
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- Karpaty, Patrik & Gustavsson Tingvall, Patrik, 2012.
"Offshoring of Services and Corruption: Do Firms Escape Corrupt Countries?,"
Ratio Working Papers
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- Karpaty, Patrik & Gustavsson Tingvall, Patrik, 2011. "Offshoring of Services and Corruption: Do Firms Escape Corrupt Countries?," Working Papers 2011:2, Örebro University, School of Business, revised 28 May 2012.
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- Hasan Faruq & Ashley Taylor, 2011. "Quality of Education, Economic Performance and Institutional Environment," International Advances in Economic Research, Springer, vol. 17(2), pages 224-235, May.
- Söderlund, Bengt & Gustavsson Tingvall, Patrik, 2012. "Dynamic Effects of Institutions on Firm-Level Exports," Ratio Working Papers 184, The Ratio Institute.
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