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Does corruption discourage international trade?

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  • de Jong, Eelke
  • Bogmans, Christian

Abstract

We use measures of trade-related corruption to investigate the effects of corruption on international trade and compare the results with those of corruption in general. We distinguish corruption in an exporting economy from that in an importing economy. Both distinctions appear to be important. Corruption in general hampers international trade, whereas bribe paying to customs enhances imports. This effect is most robust in importing countries with inefficient customs. High waiting times at the border significantly reduce international trade. The effects of unpredictability of corruption and policies are inconclusive.

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  • de Jong, Eelke & Bogmans, Christian, 2011. "Does corruption discourage international trade?," European Journal of Political Economy, Elsevier, vol. 27(2), pages 385-398, June.
  • Handle: RePEc:eee:poleco:v:27:y:2011:i:2:p:385-398
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    1. Juan C. Correa & Klaus Jaffe, 2015. "Corruption and Wealth: Unveiling a national prosperity syndrome in Europe," Papers 1604.00283, arXiv.org.
    2. Thorvaldur Gylfason & Inmaculada Martínez-Zarzoso & Per Magnus Wijkman, 2015. "Free Trade Agreements, Institutions and the Exports of Eastern Partnership Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 53(6), pages 1214-1229, November.
    3. Caleb Stroup & Ben Zissimos, 2017. "Pampered Bureaucracy, Political Stability and Trade Integration," Review of Development Economics, Wiley Blackwell, vol. 21(3), pages 425-450, August.
    4. FE, Doukouré Charles, 2011. "Qualité des Institutions et Commerce International: Évidence à Partir des Exportations de l'UEMOA
      [Institutions Quality and International Trade: Evidence from WAEMU Exports]
      ," MPRA Paper 33333, University Library of Munich, Germany.
    5. Ivlevs Artjoms & Hinks Timothy, 2015. "Bribing Behaviour and Sample Selection: Evidence from Post-Socialist Countries and Western Europe," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(2), pages 139-167, April.
    6. Bassetti, Thomas & Dal Maso, Lorenzo & Lattanzi, Nicola, 2015. "Family businesses in Eastern European countries: How informal payments affect exports," Journal of Family Business Strategy, Elsevier, vol. 6(4), pages 219-233.
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    12. repec:bla:etrans:v:25:y:2017:i:4:p:625-662 is not listed on IDEAS
    13. Agnello, Luca & Castro, Vitor & Jalles, João Tovar & Sousa, Ricardo M., 2015. "What determines the likelihood of structural reforms?," European Journal of Political Economy, Elsevier, vol. 37(C), pages 129-145.
    14. Pieroni, L. & d'Agostino, G., 2013. "Corruption and the effects of economic freedom," European Journal of Political Economy, Elsevier, vol. 29(C), pages 54-72.
    15. Warning, Susanne & Dürrenberger, Nicole, 2015. "Corruption and education: Does public financing of higher education matter?," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112836, Verein für Socialpolitik / German Economic Association.
    16. Bala Ramasamy & Matthew C.H. Yeung, 2016. "China and the Trans-Pacific Partnership Agreement: Misfit or Missed Opportunity?," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 23(1), pages 73-88.
    17. Campos, Nauro F. & Horváth, Roman, 2012. "Reform redux: Measurement, determinants and growth implications," European Journal of Political Economy, Elsevier, vol. 28(2), pages 227-237.
    18. Jose Eduardo Gutierrez Ossio & Martin Alessandro & Juan Jose Neyra, 2013. "Trade Facilitation in the Caribbean : The Case of Customs Performance
      [Facilitación del Comercio en el Caribe : el caso de las aduanas y su desempeno]
      ," World Bank Other Operational Studies 16620, The World Bank.
    19. DeMaria, Federica & Franco, Chiara & Solferino, Nazaria, 2015. "Corruption and innovation: the mediating role of trade," AICCON Working Papers 139-2015, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
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    21. Biswas, Trina & Kennedy, P. Lynn, 2016. "Corruption and Agricultural Trade," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235326, Agricultural and Applied Economics Association.
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    25. Beekman, Gonne & Bulte, Erwin H. & Nillesen, Eleonora E.M., 2013. "Corruption and economic activity: Micro level evidence from rural Liberia," European Journal of Political Economy, Elsevier, vol. 30(C), pages 70-79.

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