Mandal, Biswajit (2009): Trade reform in a corrupt economy : A note.
Download (133Kb) | Preview
We construct a general equilibrium model and analyze the effectiveness of trade reform in a distorted economy where distortion exists in form of bureaucratic corruption that arises because of trade protection at the border. In this kleptocratic set up, intermediaries are employed in order to run off from paying a part of import tariff. We use HOSV kind of framework to prove that whether trade liberalization necessarily helps reducing corruption activities and to check what happens to the production of commodities.
|Item Type:||MPRA Paper|
|Original Title:||Trade reform in a corrupt economy : A note|
|English Title:||Trade reform in a corrupt economy : A note|
|Keywords:||Corruption; International Trade; Tariff Reform; General Equilibrium|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption
D - Microeconomics > D5 - General Equilibrium and Disequilibrium
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
F - International Economics > F1 - Trade
|Depositing User:||Biswajit Mandal|
|Date Deposited:||23. Nov 2009 10:16|
|Last Modified:||17. Feb 2013 06:09|
1. Anderson, James E and E. V. Wincoop ,2001, Borders, Trade and Welfare, Brooking Trade Forum 2001 on Globalization: Issues and Implications.
2. Bhagwati, J , 1988, Protectionism, Ohlin Lecture, (MIT Press, Cambridge).
3. Dixon, H , 1998, Trade Liberalization and Growth: An Introduction, The Economic Journal, 108, 450, 1511-1512.
4. Greenaway, D., W. Morgan and P. Wright, 1998, Trade reform Adjustments and Growth: What Does Evidence Tells Us?, The Economic Journal, 108, 450, 1547-1561.
5. Helpman, E. and P. Krugman,1989, Trade Policy and Market Structure, (MIT Press, Cambridge, MA).
6. Jones, R.W. , 1965, The Structure of Simple General Equilibrium Models- Journal of Political Economy,73, 557-572.
7. Jones, R.W. , 1971, A three-factor model in theory , trade and history –Bhagwati, J et al Eds), Trade, Balance of Payments and Growth, (North- Holland, Amsterdam), 3-21.
8. Jones, R.W. and S. Marjit., 1992, International Trade and Endogenous Production Structures, W. Neuefeind and R. Riezman (eds.), Economic Theory and International Trade:Essays in Memoriam J.Trout Rader. (Springer-Verlag, NewYork, USA), 95-107,
9. Krueger, Anne O., 1998, Why Trade Liberalization is good for Growth, The Economic Journal, 108, 450, 1513-1522.
10. Marjit, S., 2008, International Trade and Economic Development: Essays in Theory and Policy, (OUP).
11. Marjit, S and B. Mandal, 2008, Corruption and Trade in General Equilibrium, Leverhulme Centre for GEP, University of Nottingham, RP No. 2008/15.
12. Wacziarg, R and K. H. Welch, 2003, Trade liberalization and growth: New Evidence,NBER, WP 10152.