چکیده:
Some of the economists believe that current volume of international trade is less than the volume that has been predicted by the conventional trade theories. Unobserved barriers (i.e. Corruption) are one of the factors that can reduce the volume of trade from the amount that has predicted by these conventional theories. This research has studied the role of corruption in the trade volume of selected countries in the Middle East and Latin America. In this study we have used an augmented gravity model of trade and panel data. In addition for estimating the model, we have used fixed effects vector decomposition method. The results show that the trade is inverted-U shape function of corruption and the little amount of corruption in both regions initially helps the amount of trade to increase but when it reaches the threshold, the volume of the trade reduces in the studied countries. In addition, the results indicate that the existence of corruption in the importing country has a negative effect on the trade volume of the studied countries and it can reduce the amount of the bilateral trade
خلاصه ماشینی:
"On the Princeton Survey Research Associates other hand, in economies with governmental organizations and high tariffs for customs and trades, corruption can expedite the trade by eliminating the governmental barriers that the economy faces hence corruption can be viewed as "grease in the wheels" of commerce and trade (Rose-Ackerman, 1997; Leff, 1964; Huntington, 1968; Lui, 1985) and in countries that strict regulation is imposed, paying bribes helps firms escape from such limitations.
Table 1: Summery of the studies about the effect of corruption on trade Researchers Proxy for Corruption The Effect on Trade Lambsdorff and Graf(1998) CPI Negative (For most countries) Kaufmann & Wei (2000) WBES Negative effect Anderson & Marcouiller (2002) Transparency and Enforceability ratio Negative effect De jong & Udo (2006) Quality of Customs Negative and linear effect Abe & Wilson (2008) Illegal Payments Negative effect Thede & Gustafson (2009) WBES Negative effect Dutt & Traca (2010) ICRG Inverted-U effect, final effect is negative Lavallee (2010) ICRG Inverted-U effect, both negative and positive Musila & Sigue (2010) CPI Negative effect 3.
5. Econometrics specification In order to study the effect of corruption on trade volume in Latin America and the Middle East and compare the results with other studies, the gravity model is proposed along with the panel data method.
According to the estimated model, trade is an inverted-U shape function of corruption at 5% level in Latin America, meaning existing the little amount of corruption in this region initially helps the amount of trade to increase but the volume of the trade will reduces when it reaches the threshold."