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Explaining corruption: are open countries less corrupt?

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  • Roberta Gatti

    (The World Bank, Development Research Group, Washington DC, USA)

Abstract

This paper analyses whether the presence of barriers to international trade and capital flows is associated with higher corruption. The evidence suggests that the main impact of trade barriers on corruption comes through the incentive to collusive behaviors between individuals and customs officials, rather than from the decreased foreign competition pressure on the domestic sector induced by restrictive trade policy. Interestingly, no clear association emerges between corruption and variables proxying for presence and intensity of controls on capital flows. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Roberta Gatti, 2004. "Explaining corruption: are open countries less corrupt?," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(6), pages 851-861.
    • Handle: RePEc:wly:jintdv:v:16:y:2004:i:6:p:851-861
    DOI: 10.1002/jid.1115
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