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Can bribes buy protection against international competition?

  • Christian Bjørnskov

    ()

This paper explores the association between corruption and trade policy. A non-technical theoretical framework first outlines the effects of corruption on non-tariff barriers at the political and bureaucratic level. Both parts have incentives to accept bribes in exchange for increasing barriers. These considerations include politicians’ re-election motives, implying that free information may weaken the association between corruption and trade barriers. I employ panel data on corruption and non-tariff barriers in three periods 1995–2005. The results show that corruption tends to lead to higher non-tariff barriers. The effectiveness of corruption in buying barriers varies with the degree of press freedom and GDP per capita. Copyright Kiel Institute 2012

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File URL: http://hdl.handle.net/10.1007/s10290-012-0128-z
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Article provided by Springer in its journal Review of World Economics.

Volume (Year): 148 (2012)
Issue (Month): 4 (December)
Pages: 751-775

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Handle: RePEc:spr:weltar:v:148:y:2012:i:4:p:751-775
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