Corruption and trade regulations: an instrumental variable approach

Young Lee and Omar Azfar

Applied Economics Letters, 2007, vol. 15, issue 3, 231-234

Abstract: We find that tariff rates decreased less rapidly in more corrupt countries in instrumental variables (IV) estimation, using mortality rates of European settlers at the time of colonization as IV. Our finding implies that tariff rates are endogenous to corruption.

Date: 2007
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DOI: 10.1080/13504850600706180

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