The Political Economics of Trade Openness and Its Impacts on Corruption

Orhan Cengiz ()
Additional contact information
Orhan Cengiz: Cukurova University, Pozanti Vocational School, Accounting and Tax Department, Adana, Turkey

Istanbul Journal of Economics-Istanbul Iktisat Dergisi, 2021, vol. 71, issue 71-2, 499-525

Abstract: Developing countries are exposed to various risks as they open their economies. While becoming more integrated with the global economy and removing trade barriers is expected to improve efficiency in resource allocation and increase welfare, in many countries this does not occur. In addition to the economic consequences of trade openness, its impact on political and institutional structures is significant for developing countries as removing trade barriers in pursuit of trade liberalization can lead to rent-seeking activities. This study investigates the impact of trade openness on corruption using the Augmented Mean Group (AMG) method with data from Turkey and selected MENA countries over the period 1996-2018. The results show that trade openness reduces control of corruption, while economic growth, the rule of law, and public expenditures increase control of corruption. In addition, Dumitrescu-Hurlin’s (2012) causality test findings reveal the existence of different linkages between variables.

Keywords: Trade openness; Corruption; Globalization JEL Classification: F19; F61; F68 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/132D507D0E01486BA2A9FCB8A14D446D (application/pdf)
https://iupress.istanbul.edu.tr/en/journal/ije/art ... -uzerindeki-etkileri (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ist:journl:v:71:y:2021:i:2:p:499-525

DOI: 10.26650/ISTJECON2021-1003148

Access Statistics for this article

Istanbul Journal of Economics-Istanbul Iktisat Dergisi is currently edited by Gökhan Karabulut

More articles in Istanbul Journal of Economics-Istanbul Iktisat Dergisi from Istanbul University, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Istanbul University Press Operational Team (Ertuğrul YAŞAR) ().