Can Bribes Buy Protection against International Competition?
38 Pages Posted: 16 Aug 2009
Date Written: August 14, 2009
This paper explores the association between corruption and trade policy. A theoretical framework first explores the effects of corruption on non-tariff barriers at the political and bureaucratic level. Relying on a panel of indices of corruption and non-tariff barriers from 1995, 2000 and 2005, estimates show that corruption tends to lead to higher non-tariff barriers. Further estimates are consistent with the theoretical considerations in suggesting that the effectiveness of corruption in buying barriers varies with the degree of press freedom.
Keywords: Trade Policy, Rent-seeking, Corruption
JEL Classification: F13, H25
Suggested Citation: Suggested Citation