Trade Openness,Corruption and Factor Abundance: Evidence from a Dynamic Panel |
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| Authors: | Sugata Marjit Biswajit Mandal Suryadipta Roy |
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| Institution: | 1. Centre for Studies in Social Sciences, R‐1 Baishnabghata Patuli Township, , India;2. Sampling and Official Statistics Unit, Indian Statistical Institute, , Kolkata, India;3. Department of Economics & Politics, Visva‐Bharati University, , Santiniketan, India;4. Department of Economics, Phillips School of Business, High Point University, , High Point, NC, 27262 USA |
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| Abstract: | Using the Heckscher–Ohlin–Samuelson–Vanek (HOSV) framework, this paper illustrates a relationship between corruption and the pattern of international trade that depends on the factor endowments of countries. The relationship between trade openness and corruption is empirically investigated by using a panel dataset on trade openness, corruption and capital–labor ratio, and applying estimation techniques developed for dynamic panels. The regression results provide strong support to the hypothesis that the effect of corruption on trade openness depends on relative factor abundance. |
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