Corruption and Trade Protection: Evidence from Panel Data
نویسنده
چکیده
This paper provides new estimates of the effects of corruption and poor institutions on trade protection. It exploits data on several measures of trade protection including import duty, international trade taxes, and the trade-GDP ratio. The paper complements the literature on the relationship between corruption and trade reform. It deviates from the previous literature in several ways. First, unobserved heterogeneity among countries have been controlled with properly specified fixed effects exploiting the time dimension present in the dataset. Secondly, instead of using tariff and non-tariff barriers, more general measures of trade protection have been used. The issue of endogeneity of corruption with respect to trade policy has been addressed using proper instruments for corruption used in previous studies. Moreover, two separate institutional measures have been used in the same regression to estimate their comparative impacts on trade policy. In general, we find that corruption and lack of contract enforcement have strong impacts to increase trade protection and negative effects on trade openness. JEL Classification: F13, O24
منابع مشابه
The effect of corruption on human development in selected Islamic countries (an approach from the ARDL panel model)
Introduction: Corruption, as a deterrent to equitable development, is recognized as a contentious issue in the field of institutional quality and political economy. The literature on the impact of corruption on economic growth often addresses the issue that corruption has had a negative impact on economic growth and development. But some economists believe that corruption has had a positive eff...
متن کاملPanel Causality Relationship Among FDI And Trade (Evidence From 16 Advanced Europe Countries)
متن کامل
Trade Potential of Turkey with Asia-Pacific Countries: Evidence from Panel Gravity Model
As a result of recent developments, global economic centre of gravity has slide to Asia-Pacific region. It is predicted that Asia-Pacific countries will take place at the first row in global trade and nearly a half of the total trade will intensify in this region at the year 2030. On the other hand, the region covers countries from different levels of development. These features of the region p...
متن کاملThe effect of corruption on human development in selected Islamic countries (an approach from the ARDL panel model)
Introduction: Corruption, as a deterrent to equitable development, is recognized as a contentious issue in the field of institutional quality and political economy. The literature on the impact of corruption on economic growth often addresses the issue that corruption has had a negative impact on economic growth and development. But some economists believe that corruption has had a positive eff...
متن کاملThe Effect of Openness on Corruption in the Selected MENA Countries
Corruption is one of the most important determinant factors in economic fields, specifically in trade; and nowadays, it is crucial to know what factors reinforce or mitigate it. Trade openness is an influencing factor on corruption, and the extant literature has two different general perspectives facing that. The first perspective emphasizes that openness has a negative impact on corruption, wh...
متن کامل