Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 182: Dynamic Effects of Corruption on Offshoring

Patrik Tingvall ()
Additional contact information
Patrik Tingvall: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

Abstract: Abstract: For international outsourcing to occur, agents from different jurisdictions must agree on a contract. Using Swedish firm-level data, we analyze offshoring and how a firm’s choice of target country and the dynamics of offshored volumes are affected by corruption. The results suggest that corruption is a deterrent to offshoring and that internationalized firms trading with many countries use their flexibility to avoid corrupt countries. Furthermore, firms that are able to establish long-term contracts do so by starting small and successively deepening their engagements.

Keywords: corruption; offshoring; gravity; firm-level data

JEL-codes: D22; F23; L24

32 pages, December 20, 2011

Full text files

pt_offshoring_182.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Martin Korpi ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:13:21.