Corruption and Agricultural Trade

Trina Biswas and P. Lynn Kennedy

No 235326, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: Using a gravity model framework this paper examines the effect of corruption on bi- lateral agricultural trade. This is the first cross-country study in the trade literature to examine the relationship between corruption and agricultural trade. The article uses five-year panel data from 2006 to 2010 and corrects for sample-selection bias. It also uses an instrumental variable approach for addressing endogeneity concerns. The study provides evidence that corruption can be trade-taxing when the protection level is low, but with the degree of protection higher than a threshold level, it becomes trade-enhancing. The results are robust for different measures of corruption.

Keywords: International Relations/Trade; Political Economy; Public Economics (search for similar items in EconPapers)
Pages: 30
Date: 2016-05-17
New Economics Papers: this item is included in nep-agr, nep-int and nep-pol
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235326

DOI: 10.22004/ag.econ.235326

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