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Corruption and bilateral trade flows

dc.contributor.authorDutt, Pushan
dc.contributor.authorTraça, Daniel
dc.contributor.institutionNOVA School of Business and Economics (NOVA SBE)
dc.contributor.pblElsevier Science B.V., Amsterdam.
dc.date.accessioned2021-10-28T04:11:25Z
dc.date.available2021-10-28T04:11:25Z
dc.date.issued2010-11-01
dc.description.abstractWe analyze the impact of corruption on bilateral trade, highlighting its dual role in terms of extortion and evasion. Corruption taxes trade, when corrupt customs officials in the importing country extort bribes from exporters (extortion effect); however, with high tariffs, corruption may be trade enhancing when corrupt officials allow exporters to evade tariff barriers (evasion effect). We derive and estimate a corruption-augmented gravity model, where the effect of corruption on trade flows is ambiguous and contingent on tariffs. Empirically, corruption taxes trade in the majority of cases, but in high-tariff environments (covering 5%to 14% of the observations) their marginal effect is trade enhancing.en
dc.description.versionauthorsversion
dc.description.versionpublished
dc.format.extent18
dc.format.extent505021
dc.identifier.doi10.1162/REST_a_00034
dc.identifier.issn0034-6535
dc.identifier.otherPURE: 11628616
dc.identifier.otherPURE UUID: b0ff6dfa-25a3-4f28-b818-8503623cbfe8
dc.identifier.otherScopus: 78650967523
dc.identifier.otherWOS: 000283902700011
dc.identifier.urihttp://hdl.handle.net/10362/126787
dc.identifier.urlhttps://www.scopus.com/pages/publications/78650967523
dc.language.isoeng
dc.peerreviewedyes
dc.subjectSocial Sciences (miscellaneous)
dc.subjectEconomics and Econometrics
dc.titleCorruption and bilateral trade flowsen
dc.title.subtitleextortion or evasion?en
dc.typejournal article
degois.publication.firstPage843
degois.publication.issue4
degois.publication.lastPage860
degois.publication.titleReview of Economics and Statistics
degois.publication.volume92
dspace.entity.typePublication
rcaap.rightsopenAccess

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