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The Impacts Of Global Economic Sanctions On Corruption: A Global Analysis

Author

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  • HOA MAI THI TRAN

    (National Economics University, Vietnam)

  • MY HA NGUYEN

    (National Economics University, Vietnam)

  • HA THANH LE

    (National Economics University, Vietnam)

Abstract

This paper investigates the influences of global economic sanctions on corruption by using the structural gravity model for 148 sanctioned countries (108 developing countries and 40 developed countries) during the 1995–2018 period. We consider various forms of sanction, including arms, military, trade, finance, travel, and others. The results reveal that the imposition of sanctions, especially arm, financial, travel, and other sanctions have a significantly negative effect on the prevalence of corruption of target countries. The effects are also largely heterogeneous across sanctioned countries in terms of their economic development. Furthermore, the properties of the institutional quality of the sanctioned state critically affect the relationship between global sanctions and national corruption. Particularly, the well-developed institutional quality helps target countries address the consequences of global sanctions on national corruption. The empirical findings of this study are expected to provide vital insightful lessons for economists and policymakers in the target countries in combating the corruption pervasiveness.

Suggested Citation

  • Hoa Mai Thi Tran & My Ha Nguyen & Ha Thanh Le, 2022. "The Impacts Of Global Economic Sanctions On Corruption: A Global Analysis," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-29, December.
    • Handle: RePEc:wsi:gejxxx:v:22:y:2022:i:04:n:s2194565923500136
    DOI: 10.1142/S2194565923500136
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    More about this item

    Keywords

    Global sanctions; corruption; institutional quality;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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