BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 5/2009:
Composition of Exports and Cross-Country Corruption
Rajeev K. Goel ()
and Iikka Korhonen ()
Abstract: This research examines the connection between a country’s
export structure and corruption, incorporating disaggregated data on
exports for a recent time period over a large set of nations. We ask
whether various types of exports (e.g. agricultural, mineral, manufacturing
and fuel) exert similar influences on corruption across nations. Our
results suggest that corruption decreases as nations attain prosperity, as
economic and political freedoms increase, and with a larger government
size. Ceteris paribus, transition countries are also found to be more
corrupt. Ethnic and linguistic fractionalizations exert opposite influences
on corruption, while religious fractionalization does not seem to matter.
Although the effects of ore and manufacturing exports are statistically
insignificant, agricultural and fuel exports affect corruption
significantly. Our findings for fuel exports support previous research, as
well as uniquely demonstrate that the impact of fuel exports is sensitive
to the prevailing corruption level. We conclude with a discussion of policy
implications.
Keywords: corruption; exports; resource curse; government; (follow links to similar papers)
JEL-Codes: H11; K42; O13; (follow links to similar papers)
28 pages, July 1, 2009
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