Master of Science
Previous findings of economic literature pointed out that there is significant correlation between corruption and trade. However, this study was based on under developing countries. The model used in this study is similar to the model used by Wanjala and Pierre‘s gravity model but with few changes in the model.
This study develops and estimates the relationship between corruption and trade among developing nations and under developing nations. Wanjala and Pierre use the gravity model to estimate the effect of corruption on trade. In this paper I will use a similar model, but will not focus on border effects.
Paper concludes that decrease in corruption increases the trade flow. Further research needs to be done to examine if corruption helps increase in economic growth