Does corruption discourage international trade?
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SourceEuropean Journal of Political Economy, 27, 2, (2011), pp. 385-398
Article / Letter to editor
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European Journal of Political Economy
SubjectDistributional Conflicts in a Globalizing World: Consequences for State-Market-Civil Society Arrangements
We use measures of trade-related corruption to investigate the effects of corruption on international trade and compare the results with those of corruption in general. We distinguish corruption in an exporting economy from that in an importing economy. Both distinctions appear to be important. Corruption in general hampers international trade, whereas bribe paying to customs enhances imports. This effect is most robust in importing countries with inefficient customs. High waiting times at the border significantly reduce international trade. The effects of unpredictability of corruption and policies are inconclusive.
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