GDN (No. RRC15+55): Structural Effects of Corruption and Anticorruption: Trade Channel
|Principal investigator:||Mgr. Michal Paulus|
Mgr. Eva Michalíková
Ing. Vilém Semerák M.A., Ph.D.
|Description:||The project investigates the role of corruption in international trade. We examine 1) the restrictive and trade-promoting influence of corruption specifically upon trade flows and separate trade partners into clusters according to the prevailing role of corruption in the cluster, 2) the role of corruption in disaggregated trade data using the augmented gravity model, 3) the impact of corruption in value added trade and 4) the “middlemen economies” hypothesis that maintains that there is a specific position of middle corrupt countries which can play a role of middleman between highly and lowly corrupted countries. We focus on the exports of Visegrad countries and more developed EU members. In order to isolate the effects of corruption we take into account possible cross effects between the role of compatibility in corruption-like behaviour and migration flows/language similarities. We aim to provide an empirical and theoretical background for the assessment of anti-corruption policies to uncover whether the anticorruption laws can have negative effects on trade. Our basic methodology is the augmented micro-founded gravity model estimated by the Poisson Pseudo Maximum Likelihood estimator. We control for path dependency using the Difference and System GMM estimators. Robustness techniques are applied through the Least Trimmed Squares estimator.|
|Participation:||Another collaborator: Laura Serlenga, Università degli Studi di Bari|
|Work in grant:||Principal investigator|