Corruption and Agricultural Trade

Using a gravity model framework this paper examines the effect of corruption on bi- lateral agricultural trade. This is the first cross-country study in the trade literature to examine the relationship between corruption and agricultural trade. The article uses five-year panel data from 2006 to 2010 and corrects for sample-selection bias. It also uses an instrumental variable approach for addressing endogeneity concerns. The study provides evidence that corruption can be trade-taxing when the protection level is low, but with the degree of protection higher than a threshold level, it becomes trade-enhancing. The results are robust for different measures of corruption.

Issue Date:
May 17 2016
Publication Type:
Conference Paper/ Presentation
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JEL Codes:
F10; F13; F14

 Record created 2017-04-01, last modified 2020-10-28

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