Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306055 
Year of Publication: 
2021
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment Journal [ISSN:] 1864-6042 [Volume:] 15 [Issue:] 1 [Year:] 2021 [Pages:] 187-198
Publisher: 
De Gruyter, Berlin
Abstract: 
This study re-examines the impact of corruption on international trade accounting for both inter- and intra-national flows in line with the latest advances in the gravity equation literature. Using a wide sample of countries for the period 1995-2017, our results show that the non-inclusion of internal trade flows drastically biases the estimations. Additionally, we find that the negative impact of corruption on trade is reduced, ceteris paribus, in poorer countries. We also find non-linearities, more corrupt countries present a more harmful impact of corruption on trade. Moreover, we perform a general equilibrium analysis to investigate the impact of a given reduction in perceived corruption on a selected group of countries' economic growth and prices. We find that these effects are far from being negligible, especially when there is a "synchronized" reduction in corruption in most corrupt countries.
Subjects: 
corruption
general equilibrium
gravity
intra-national trade flows
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.