The Multifaceted Impact of Corruption on International Trade

Författare

Susanna Thede
Nils-Åke Gustafson

Summary, in English

The purpose of this paper is to perform a detailed examination of corruption effects on trade

based on corruption characteristics known to affect economic exchange within the corruption

research field. These characteristics are the level, prevalence, customs location, function and

predictability of corruption. The multifaceted corruption impact on trade is empirically

examined using a corruption-augmented gravity equation. The equation is estimated using a

Heckman version of a GMM instrumental variable method. Our results provide strong

evidence of that import flows vary systematically with the investigated corruption

characteristics and enable the identification of channels through which corruption affects

international trade. The empirical investigation clearly indicates the need to examine the

multifaceted role of corruption to properly assess the trade effects of corruption.

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