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Composition of Exports and Cross-Country Corruption

  • Goel, Rajeev K.

    ()

    (BOFIT)

  • Korhonen, Iikka

    ()

    (BOFIT)

This research examines the connection between a country’s export structure and corruption, incorporating disaggregated data on exports for a recent time period over a large set of nations. We ask whether various types of exports (e.g. agricultural, mineral, manufacturing and fuel) exert similar influences on corruption across nations. Our results suggest that corruption decreases as nations attain prosperity, as economic and political freedoms increase, and with a larger government size. Ceteris paribus, transition countries are also found to be more corrupt. Ethnic and linguistic fractionalizations exert opposite influences on corruption, while religious fractionalization does not seem to matter. Although the effects of ore and manufacturing exports are statistically insignificant, agricultural and fuel exports affect corruption significantly. Our findings for fuel exports support previous research, as well as uniquely demonstrate that the impact of fuel exports is sensitive to the prevailing corruption level. We conclude with a discussion of policy implications.

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File URL: http://www.suomenpankki.fi/bofit_en/tutkimus/tutkimusjulkaisut/dp/Documents/DP0509.pdf
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Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 5/2009.

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Length: 28 pages
Date of creation: 01 Jul 2009
Date of revision:
Handle: RePEc:hhs:bofitp:2009_005
Contact details of provider: Postal: Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland
Phone: + 358 10 831 2268
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Web page: http://www.suomenpankki.fi/bofit_en/
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