Corruption and assortative matching of partners in international trade

Arusha Cooray, Chandan Jha and Bibhudutta Panda

No wp-2020-114, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: While the effects of corruption on bilateral trade have been relatively well explored, its effect on the composition of trading partners has not been studied. In this paper, we argue that corruption in a country is likely to impose asymmetric costs on its trading partners depending on their characteristics. As a result, as the level of corruption in a country changes, its trade flows from some of its trading partners change more than others depending on the latter's characteristics, causing a change in the composition of its trading partners.

Keywords: Corruption; international bribery; International trade; OECD Convention (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (3)

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Journal Article: Corruption and assortative matching of partners in international trade (2023)
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