Chandan Jha, Ph.D., of the Madden School of Business co-wrote an article that was published in the European Journal of Political Economy. In it, Dr. Jha and his co-authors, Arusha Cooray and Bibhudutta Panda, investigate whether corrupt countries trade more or less with one another. Their findings show that more corrupt countries trade less with other high-corrupt countries. They also find that as corruption in a country increases, so does its trade volume with the countries that are signatories to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. The authors conclude that institutional similarities (proxied by corruption) impose additional bilateral trade costs. The paper can be found here.

Actions: E-mail | Permalink |