Exports and Cross-National Corruption: A Disaggregated Examination

Posted: 1 Aug 2011 Last revised: 19 Apr 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Iikka Korhonen

Bank of Finland - Institute for Economies in Transition (BOFIT)

Date Written: 2011

Abstract

This paper empirically examines the relation between categories of export and corruption across countries. Aggregate exports and agricultural exports tend to decrease corruption, while fuel exports increase corruption. The influence of agricultural exports in more pronounced in more corrupt nations, while fuel exports contribute to corruption in least corrupt nations. Manufacturing and ore exports, on the other hand, generally fail to show significant impacts on corruption. Our findings demonstrate that the resource curse is sensitive to prevailing corruption levels, and this finding is novel in the literature. Consistent with the extant literature, corruption decreases with income, and (at some corruption levels) as political freedom increases, and with larger government size. The findings are fairly robust to an alternate corruption measure.

Keywords: Corruption, Exports, Resource curse, Government, Quantile regression

JEL Classification: H11, K42, O13

Suggested Citation

Goel, Rajeev K. and Korhonen, Iikka, Exports and Cross-National Corruption: A Disaggregated Examination (2011). Economic Systems, Vol. 35, No. 1, pp. 109-124, 2011. Available at SSRN: https://ssrn.com/abstract=1899665

Rajeev K. Goel

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Iikka Korhonen (Contact Author)

Bank of Finland - Institute for Economies in Transition (BOFIT) ( email )

P.O.Box 160
Helsinki 00101
Finland

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