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Protection commerciale et corruption bureaucratique: une enquête empirique .
Author(s) -
Dutt Pushan
Publication year - 2009
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2008.01503.x
Subject(s) - endogeneity , protectionism , economics , language change , free trade , international economics , panel data , commercial policy , corporate governance , bureaucracy , trade barrier , international trade , econometrics , political science , finance , politics , law , art , literature
We examine whether protectionist trade policies lead to increased bureaucratic corruption. Using multiple measures of corruption and trade policies, we find strong evidence that corruption is significantly higher in countries with protectionist trade policies. These results are robust to endogeneity concerns. Next, a panel‐data‐based GMM methodology is used to estimate a dynamic model of corruption. This estimator controls for country‐specific effects, potential endogeneity of trade policy, and existence of measurement errors afflicting the corruption data. The paper strengthens the case for trade liberalization and argues that trade reforms may lead to improvements in governance.