Composition of exports and cross-country corruption

Rajeev Goel and Iikka Korhonen

No 5/2009, BOFIT Discussion Papers from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: This research examines the connection between a country's export structure and corruption, incorporating disaggregated data on exports for a recent time period over a large set of nations. We ask whether various types of exports (e.g. agricultural, mineral, manufacturing and fuel) exert similar influences on corruption across nations. Our results suggest that corruption decreases as nations attain prosperity, as economic and political freedoms increase, and with a larger government size. Ceteris paribus, transition countries are also found to be more corrupt. Ethnic and linguistic fractionalizations exert opposite influences on corruption, while religious fractionalization does not seem to matter. Although the effects of ore and manufacturing exports are statistically insignificant, agricultural and fuel exports affect corruption significantly. Our findings for fuel exports support previous research, as well as uniquely demonstrate that the impact of fuel exports is sensitive to the prevailing corruption level. We conclude with a discussion of policy implications.

Keywords: corruption; exports; resource curse; government (search for similar items in EconPapers)
JEL-codes: H11 K42 O13 (search for similar items in EconPapers)
Date: 2009
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https://www.econstor.eu/bitstream/10419/212649/1/bofit-dp2009-005.pdf (application/pdf)

Related works:
Journal Article: Exports and cross-national corruption: A disaggregated examination (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofitp:bdp2009_005

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