The Effect of Corruption on Exports and Imports in Latin America and the Caribbean

International trade, in particular exports and imports, are regarded as important factors that can increase the economic development of the Latin American and Caribbean (LAC) countries. However, little is known whether the ability of these countries to strengthen their global positions in trade can be affected by the pervasiveness of local corruption. The objective of this study is to analyze the impact of corruption on exports and imports in LAC countries. Our empirical results from the gravity model indicate that local corruption strongly reduces exports in the region. Thus, we conclude that LAC would be able to achieve more export growth if corruption in the region was effectively reduced.     

The interconnections between bribery,political network,government supports,and their consequences on export performance of small and medium enterprises in Thailand

In emerging economies, the government is the main sector that plays a significant role in providing various kinds of support to help local entrepreneurial firms build their capabilities to effectively compete in export markets. However, due to a weak institution in these countries, a question begs to be answered whether government support is efficiently allocated to these firms. The aim of this research is to explore the interconnection between bribery, political network, and access to government support, as well as their effects on the export performance of small and medium enterprises in Thailand. Survey data collected from a sample of 170 firms that joined the trade exhibition in Bangkok were analyzed to provide evidence. Results from partial least squares regression showed that although government support was strongly associated with a firm’s export performance, the extent to which government support was received was found to be strongly associated with the political network that entrepreneurs have developed as well as the extent of bribery that they have engaged in.