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Corruption and the Level of Trade Protectionism

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  • Mohammad Mahdi Ghodsi

Abstract

In this paper, impacts of corruption on the level of trade protectionism, trade openness, and imports are analyzed. It is argued that special interest groups who are lobbying with corrupted governments might seek more benefits in some special subgroups of imports. Possible country and time specific fixed effects, endogeneity and some other problems in the regressions are controlled to achieve results that are more robust. Corruption measures from two different sources of Worldwide Governance Indicator and Transparency International website are analyzed in two separate similar approaches. It is finally concluded that both measures of corruption implicate negative influence on only one import subgroup, while there is no significant impact on protectionism measures.

Suggested Citation

  • Mohammad Mahdi Ghodsi, 2012. "Corruption and the Level of Trade Protectionism," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 30.
  • Handle: RePEc:eko:ekoeko:30_75
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    File URL: http://ekonomia.wne.uw.edu.pl/ekonomia/getFile/347
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    References listed on IDEAS

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    3. Pushan Dutt & Daniel Traca, 2010. "Corruption and Bilateral Trade Flows: Extortion or Evasion?," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 843-860, November.
    4. Subhayu Bandyopadhyay & Suryadipta Roy, 2006. "Corruption and Trade Protection: Evidence from Panel Data," Working Papers 06-11 Classification- JEL, Department of Economics, West Virginia University.
    5. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    6. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    7. Susanna Thede & Nils-Åke Gustafson, 2012. "The Multifaceted Impact of Corruption on International Trade," The World Economy, Wiley Blackwell, vol. 35(5), pages 651-666, May.
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    Cited by:

    1. M. Mahdi Ghodsi, 2013. "Welfare Analysis of a Prohibitive NTM in a Society with a Proportion of Concerned Consumers," Working Papers 2013-12, Faculty of Economic Sciences, University of Warsaw.
    2. Mahdi Ghodsi, 2015. "Distinguishing Between Genuine and Non-Genuine Reasons for Imposing Technical Barriers to Trade: A Proposal Based on Cost-Benefit Analysis," wiiw Working Papers 117, The Vienna Institute for International Economic Studies, wiiw.

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    Keywords

    corruption; trade policy; protectionism;

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