Corruption and bilateral trade flows

Detalhes bibliográficos
Autor(a) principal: Dutt, Pushan
Data de Publicação: 2010
Outros Autores: Traça, Daniel
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/126787
Resumo: We 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.
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spelling Corruption and bilateral trade flowsextortion or evasion?Social Sciences (miscellaneous)Economics and EconometricsWe 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.NOVA School of Business and Economics (NOVA SBE)RUNDutt, PushanTraça, Daniel2021-10-28T04:11:25Z2010-11-012010-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/article18application/pdfhttp://hdl.handle.net/10362/126787eng0034-6535PURE: 11628616https://doi.org/10.1162/REST_a_00034info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T05:07:03Zoai:run.unl.pt:10362/126787Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:45:57.376116Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Corruption and bilateral trade flows
extortion or evasion?
title Corruption and bilateral trade flows
spellingShingle Corruption and bilateral trade flows
Dutt, Pushan
Social Sciences (miscellaneous)
Economics and Econometrics
title_short Corruption and bilateral trade flows
title_full Corruption and bilateral trade flows
title_fullStr Corruption and bilateral trade flows
title_full_unstemmed Corruption and bilateral trade flows
title_sort Corruption and bilateral trade flows
author Dutt, Pushan
author_facet Dutt, Pushan
Traça, Daniel
author_role author
author2 Traça, Daniel
author2_role author
dc.contributor.none.fl_str_mv NOVA School of Business and Economics (NOVA SBE)
RUN
dc.contributor.author.fl_str_mv Dutt, Pushan
Traça, Daniel
dc.subject.por.fl_str_mv Social Sciences (miscellaneous)
Economics and Econometrics
topic Social Sciences (miscellaneous)
Economics and Econometrics
description We 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.
publishDate 2010
dc.date.none.fl_str_mv 2010-11-01
2010-11-01T00:00:00Z
2021-10-28T04:11:25Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/126787
url http://hdl.handle.net/10362/126787
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0034-6535
PURE: 11628616
https://doi.org/10.1162/REST_a_00034
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 18
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