Corruption and assortative matching of partners in international trade

Cooray, Arusha; Jha, Chandan Kumar; Panda, Bibhudutta

doi:10.35188/unu-wider/2020/871-9

Cited by 2 publications

(1 citation statement)

References 38 publications

(99 reference statements)

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“…Finally, it is revealed that tariff rate and non-tariff barriers, which are dimensions of Trade Freedom, and restrictions on investments, payments, transfers, and capital transactions, which are dimensions of Investment Freedom, have a significant impact on the corruption in this study. The significant impact of Trade Freedom and Investment Freedom on Corruption is frequently emphasized in the literature (Shirazi, 2020;Cooray et al, 2020;Smidova, 2020;Qureshi et al, 2020;Zheng & Xiao, 2020). Similar to the studies in the literature, a positive correlation between Trade Freedom, Investment Freedom, and Corruption is revealed in this study.…”

Section: Discussionsupporting

confidence: 87%

The Role of Economic Freedom in Interpreting Corruption Perception

Depren

Yangın

2021

RIMCIS

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The main purpose of the study is to examine the nexus between corruption and economic freedom to determine the most influencing factors to be focused on to reduce corruption. With this aim, two different machine learning algorithms are performed to find out the single effect, two-way, and three-way interaction effects of factors affecting corruption. As a result of the analysis, tax burden, government integrity, and government spending are the main indicators to be focused on to improve corruption steadily. Besides, critical thresholds of the tax burden, government integrity, and government spending are 83.3, 50.9, and 40.6, respectively. Since there are a limited number of studies to predict corruption by machine learning algorithms in the extant literature, this research provides highly detailed information to policy-makers where they can focus on reducing corruption perception.

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Section: Discussionsupporting

confidence: 87%

The Role of Economic Freedom in Interpreting Corruption Perception

Depren

Yangın

2021

RIMCIS

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Do transactions to tax havens and corruption attract officially supported export credit? Evidence from three European export credit agencies

Koch

2022

SN Bus Econ

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OECD governments provide billions in export credit annually in support of national exporters to developing countries. Linked to the OECD-recommendation on anti-bribery and export credits, the research focuses on whether support of the export credit agencies is dependent on the corruption levels and so called ‘tax haven’ status of the countries to which the exports are destined. We compose a unique panel data set based on data on the export credit agencies of the United Kingdom, the Netherlands and Sweden. We find that corruption levels in the countries to which the exports are destined do not have an influence on the presence and level of export credits. Conversely, whether the destination country of the export is a ‘tax haven’ is important: British and Dutch agencies are significantly more likely to provide export credit for export transactions to tax havens than for non-tax-havens, all else being equal. This declines for the Netherlands over time. The results indicate that the chances that the United Kingdom Export Finance supports transactions with EC to a tax haven are 12 times more likely than for a non-tax haven countries, all else being equal. In the Netherlands, this is 3 times more likely. Based on the findings, we recommend that export credit agencies and their financial backers be extra vigilant in their due diligence policies, especially with respect to ‘tax havens’ and make these policies publicly available.

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Corruption and assortative matching of partners in international trade

Abstract: This study has been prepared within the UNU-WIDER project How do effective states emerge?

Cited by 2 publications

References 38 publications

The Role of Economic Freedom in Interpreting Corruption Perception

The Role of Economic Freedom in Interpreting Corruption Perception

Do transactions to tax havens and corruption attract officially supported export credit? Evidence from three European export credit agencies

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