Sequeira, Sandra
(2016)
Corruption, trade costs, and gains from tariff liberalization: evidence from Southern Africa.
American Economic Review, 106 (10).
pp. 3029-3063.
ISSN 0002-8282
Abstract
This paper exploits quasi-experimental variation in tariffs in southern Africa to estimate trade elasticities. Traded quantities respond only weakly to a 30 percent reduction in the average nominal tariff rate. Trade flow data combined with primary data on firm behavior and bribe payments suggest that corruption is a potential explanation for the observed low elasticities. In contexts of pervasive corruption, even small bribes can significantly reduce tariffs, making tariff liberalization schemes less likely to affect the extensive and the intensive margins of firms' import behavior. The tariff liberalization scheme is, however, still associated with improved incentives to accurately report quantities of imported goods, and with a significant reduction in bribe transfers from importers to public officials.
| Item Type: |
Article
|
| Official URL: |
https://www.aeaweb.org/journals/aer |
| Additional Information: |
© 2016 American Economic Association |
| Divisions: |
International Development |
| Subjects: |
H Social Sciences > HF Commerce
H Social Sciences > HV Social pathology. Social and public welfare. Criminology |
| JEL classification: |
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption
F - International Economics > F1 - Trade > F13 - Commercial Policy; Protection; Promotion; Trade Negotiations; International Trade Organizations
H - Public Economics > H8 - Miscellaneous Issues > H83 - Public Administration
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements: Legal, Social, Economic, and Political
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O19 - International Linkages to Development; Role of International Organizations
O - Economic Development, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy |
| Date Deposited: |
14 Nov 2016 17:16 |
| Last Modified: |
15 Apr 2024 04:27 |
| Funders: |
International Growth Center, World Bank Group, The London School of Economics and Political Science |
| URI: |
http://eprints.lse.ac.uk/id/eprint/68286 |
Actions (login required)
 |
View Item |
Download Statistics
Download Statistics