The Effects of Corruption on Trade Flows: A Disaggregated Analysis

Bandyopadhyay, Sudeshna; Roy, Suryadipta

doi:10.1007/978-81-322-2797-7_6

Cited by 2 publications

(3 citation statements)

References 30 publications

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“…Corruption also brings effects to bilateral trade flows, as stated in (Bandyopadhyay and Roy, 2016). There is a negative relation between export of particular goods by developed countries and their domestic corruption level; meanwhile, high level of corruption in a partner country's has negative impact on developed countries' particular goods export.…”

Section: Introductionmentioning

confidence: 96%

“…In applied economics, lack of institutional quality has long been considered as one of the causes for economic inefficiency. Bandyopadhyay (2016) explains that differences in country's governance and institutional quality can cause differences in bilateral trade efficiency. Poor quality of institutions could also be a signal of rampant illegal activities and severity of corruption that trigger highcost economy in a country (Della Porta, 2000;Chang & Chu, 2006;Habibov et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…Ranjan and Lee (2007) also support the idea by considering that international trade volume will be bigger five times if there is no friction of interests. Other researchers investigating the role of corruption on bilateral trade activities are Anderson and Morcuouiller (2002), Gatti (2004), De Groot et al (2004, Berkowitz et al (2006), Nunn (2007), Levchenko (2007), Mohlaman et al (2010, Mejeed (204), Marjit et al (2014), Nunn and Trefler (2014), and Bandyopadhyay and Roy (2016).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Corruption perception and bilateral trade flows: Evidence from developed and developing countries

Saputra¹

2019

Journal of International Studies

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This study aims to examine the impact of corruption on bilateral trade flows in developed and developing countries by using an extension of the gravity panel model. The model reviews 30 countries among which 19 are developed countries and 11 are developing ones, during the period of 1995-2016. For the impact of corruption on export activities, it appears that domestic level of corruption has insignificant effect upon bilateral export in both developed and developing countries, but the asymmetric effect of the partner country's corruption level is significantly apparent in the case of export. Positive effect from low level of partner countries' corruption in raising bilateral export is found to be greater for developing countries than for developed ones. The effect of corruption on bilateral imports tend to be similar to bilateral exports, however, it has been also found that low domestic corruption level in the reporting countries will positively affect import activities and that fact becomes more apparent for developing countries.

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Section: Introductionmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Corruption perception and bilateral trade flows: Evidence from developed and developing countries

Saputra¹

2019

Journal of International Studies

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Impact of Institutional Quality on Bilateral Exports: Exploring the role of Development

Chishti¹,

Hussain²,

Khursheed³

2021

JAEBS

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This study uses the gravity model to analyze the homogeneous and heterogeneous effect of institutional quality and development on bilateral exports. We use the panel data of 61countries for the period 2000 to 2016 and employ the Poisson Pseudo Maximum Liklihood (PPML) econometric technique with a High-Dimensional fixed effect (HDFE) for an estimation that allows the analysis in the presence of high dimensional fixed effects. The findings reveal that the direct effect of institutional quality and level of development on bilateral exports is positive and significant. Further, the institutional quality and the level of development of the exporter country have more impact on bilateral exports than that of the importer country. Our estimation results of homogeneity of institutions show that when both trading countries share the same level of institutional quality, it boosts the bilateral exports. The major finding of this study reveals that the interaction effect of institutional quality and level of development on bilateral exports is positive and significant. High value of interaction term of exporter economy and low value of importer country suggest that interaction effect of institutional quality and level of development on bilateral exports of exporter country have a greater impact than the interaction effect of institutional quality and level of development of importer country due to having the more production and exports facilities in exporter country. Based on the findings, some essential policies are also recommended, followed by some future research gaps.

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The Effects of Corruption on Trade Flows: A Disaggregated Analysis

Cited by 2 publications

References 30 publications

Corruption perception and bilateral trade flows: Evidence from developed and developing countries

Corruption perception and bilateral trade flows: Evidence from developed and developing countries

Impact of Institutional Quality on Bilateral Exports: Exploring the role of Development

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