EconPapers    
Economics at your fingertips  
 

Corruption and Trade

Muhammad Majeed ()

Journal of Economic Integration, 2014, vol. 29, 759-782

Abstract: Using a panel data set for 146 countries over the period 1984~2007, this study contributes in the area of trade-corruption linkages by highlighting the non-monotonic relationship between trade and corruption and significance of complementary policy reforms in shaping the link. Findings of the study suggest that trade increases corruption in a linear specification while its effect on corruption decreasing in a non-linear specification. The analysis exhibits that this non-linear nature of the relationship is worth noting and help answering the question why the literature on the relationship between trade and corruption is not conclusive. Furthermore, we make argument and find empirical support to our proposition that this is not just openness to trade that can reduce corruption but there are complimentary policy reforms that cause a decline in corruption. Findings of the study are robust to alternative specifications, econometric techniques, control of nonlinearity, control of interactive effects, and exclusion of outliers.

Keywords: Corruption; Law; Openness To Trade; Panel Data (search for similar items in EconPapers)
JEL-codes: C23 D73 F14 H10 K42 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://sejong.metapress.com/ Full text (application/pdf)

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:ris:integr:0649

Access Statistics for this article

Journal of Economic Integration is currently edited by Jong-Eun Lee

More articles in Journal of Economic Integration from Center for Economic Integration, Sejong University Contact information at EDIRC.
Bibliographic data for series maintained by Jong-Eun Lee ().

 
Page updated 2020-06-10
Handle: RePEc:ris:integr:0649