alphanumeric journal
The Journal of Operations Research, Statistics, Econometrics and Management Information Systems
The Econometric Analysis of the Relationship Between Perceived Corruption, Foreign Trade and Foreign Direct Investment in the Context of International Indices
Abstract
The aim of this study is to reveal the transformation of corruption into an economic problem in the historical process and the effects of international economic relations (foreign trade and foreign direct investment) on corruption. In accordance with this purpose, the relationship between perceived corruption, measured by ICRG and CPI indices, and foreign trade and foreign direct investment is evaluated through panel data analysis. Within the scope of analysis, the countries are evaluated in four basic categories according to 2017 income classification of the World Bank. The model established for the ICRG index is found significant in low-income countries. In these countries, increase in exports causes increase the corruption. In low-middle income countries increase in imports reduces the corruption while increase in exports causes increasing the corruption in high-middle income countries. In order to assess the impact of the customs duties ICRG and CPI models for the 60 countries that aren’t categorized in 2003-2015 periods have significant results. In both models, it is seen that increase in exports decreases the corruption while increase in customs duties rates increase the corruption.
Keywords: Corruption, Foreign Direct Investments, International Trade, Panel Data Analysis
Algılanan Yolsuzluk ile Dış Ticaret ve Doğrudan Yabancı Yatırım Arasındaki İlişkinin Uluslararası Endeksler Bağlamında Ekonometrik Analizi
Öz
Yolsuzluğun tarihsel süreçte ekonomik bir soruna dönüşümünün, bununla birlikte dış ekonomik ilişkilerin (dış ticaret ve doğrudan yabancı yatırım) yolsuzluk üzerinde yarattığı etkilerin ortaya çıkarılması çalışmanın amacını oluşturmaktadır. Bu amaç doğrultusunda algılanan yolsuzluğu ölçmek amacıyla kullanılan ICRG-Corruption (International Country Risk Guide) ve CPI (Corruption Perception Index) endeksleri ile dış ticaret ve doğrudan yabancı yatırım ilişkisi panel veri analizi ile değerlendirilmektedir. Analiz kapsamında ülkeler, Dünya Bankası'nın 2017 gelir sınıflamasına göre dört temel kategoride değerlendirilmektedir. ICRG endeksi için kurulan modelde düşük gelirli ülkeler anlamlı bulunmuştur. Bu ülkelerde, ihracatın artması, yolsuzluğun artmasına neden olmaktadır. Düşük-orta gelirli ülkelerde ithalatta artış yolsuzluğa neden olurken, ihracatta artış orta-yüksek gelirli ülkelerde yolsuzluğa neden olmaktadır. Gümrük vergilerinin etkisini değerlendirmek için 2003-2015 döneminde kategorize edilmeyen 60 ülke için kurulan ICRG ve CPI modelleri önemli sonuçlar ortaya koymaktadır. Her iki modelde de ihracatın artmasının yolsuzluğu azalttığı, gümrük vergilerindeki artışların ise yolsuzluğu arttığı görülmektedir.
Anahtar Kelimeler: Doğrudan Yabancı Yatırım, Panel Veri Analizi, Uluslararası Ticaret, Yolsuzluk
Suggested citation
(). Algılanan Yolsuzluk ile Dış Ticaret ve Doğrudan Yabancı Yatırım Arasındaki İlişkinin Uluslararası Endeksler Bağlamında Ekonometrik Analizi. Alphanumeric Journal, 6(1), 117-132. http://dx.doi.org/10.17093/alphanumeric.372370
References
- Ades, A.,Di Tella, R. (1999), Rents, Competition, and Corruption, The American Economic Review, Sayı 4, ss. 982-993.
- Al-Sadig, A.(2009), The Effects of Corruption on FDI Flows , Cato Journal, Sayı: 29 (2), ss. 267-294.
- Bandyopadhyay, S., Roy, S. (2007), Corruption and Trade Protection: Evidence From Panel Data , Research Division Federal Reserve Bank of St. Louis, Working Paper Series, ss. 1-22.
- Bhagwatı, J.N. (1982), Directly Unproductive, Profit-Seeking (DUP) Activities , Journal of Political Economy, Sayı: 90(5), ss. 988-1002.
- Brada, J.C., Drabek, Z., Mendez, J.A., Perez, M.F. (2017), A Model of Corruption and Foreign Direct Investment A La John Dunning , Available at SSRN: https://ssrn.com/abstract=2938370, Erişim Tarihi: 05.03.2017.
- Drabek, Z., Payne, W. (2002), The Impact of Transparency on Foreign Direct Investment , Journal of Economic Integration, Sayı:17 (4), ss. 777-810.
- Dutt, P.,Traca, D. (2010), Corruption and Bilateral Trade Flows: Extortion or Evasion? , The Review of Economics and Statistics, Sayı 92 (4), ss. 843-860.
- Egger, P., Winner, H. (2006), How Corruption Influences Foreign Direct Investment: A Panel Data Study , Economic Development and Cultural Change, Sayı: 54 (2), ss.459-486.
- Fisman, R., Wei, S.(2004), Tax Rates and Tax Evasion: Evidence from Missing Imports in China, Journal of Political Economy, Sayı: 112 (2), ss.471-495.
- Huntington, S.P. (1968), Political Order in Changing Societies , New Haven and London, Yale University Press.
- Jong, De E.,Udo, E. (2006), Is Corruption Detrimental to International Trade , Radboud Üniversitesi, Nijmegen.
- Jong, E., Bahamas, C. (2011), Does Corruption Discourage International Trade? , European Journal of Political Economy, Sayı:27, ss. 385-398.
- Krueger, A.O. (1974), The Political Economy of the Rent-Seeking Society , The American Economic Review, Sayı: 64(3), ss. 291-303.
- Larrain, F., Tavares, J. (2000), Can openness deter corruption? Unpublished working paper, Harvard University. Available online at http://www. iseg. utl. pt/departamentos/economia/ecosemin/00_01/t2000-08. Pdf, Erişim Tarihi: 30.03.2017.
- Leff, N.H. (1964), Economic Development Through Bureaucratic Corruption. American Behavioral Scientist 8 (3), ss. 8–14. doi:10.1177/000276426400800303.
- Majeed, M.T.(2014), Corruption and Trade , Journal of Economic Integration, Sayı: 29 (4), ss. 759-782.
- Marjıt, S., Mandal, B.,Roy, S.(2014), Trade Openness, Corruption and Factor Abundance: Evidence from a Dynamic Panel , Review of Development Economics, Sayı: 18 (1), ss. 45-58.
- Parayno, G.L. (1999), Reforming in the Philippines Customs Service through Electronic Governance , Conference Papers and Proceedings, Asian Development Bank and Organization for European Cooperation and Development.
- Qıan, X., Sandoval-Hernandez, J., Garrett, J.Z. (2012), Corruption Distance and Foreign Direct Investment , 7. Asya Pasifik Ekonomik İşbirliği (APEA) Konferansı, Bushan, Güney Kore, 12 Nisan 2012.
- Rose-Ackerman, S. (1997), The Political Economy of Corruption , Corruption and the Global Economy, Washington D.C: Institute for International Economics.
- Sandholtz, W., Koetzle, W.(2000), Accounting for Corruption: Economic Structure, Democracy, and Trade , International Studies Quarterly, Sayı: 44 ss. 31-50.
- Smarzynska, B.K, Wei, S.(2001) Corruption and Composition of Foreign Direct Investment: Firm-Level Evidence , CID Working Paper, Sayı: 60, ss. 1-24.
- Teixeira, A.A., Grande, M. (2012), Entry Mode Choices of Multinational Companies (MNCs) and Host Countries’ Corruption: A Review , African Journal of Business Management, Sayı: 6(1), Available online at http://www.academicjournals.org/AJBM .
- Torrez, J. (2002), The Effect of Openness on Corruption , J. Int. Trade & Economic Development, Sayı: 11(4), ss.387-403.
- Uluslararası Şeffaflık Derneği, http://www.seffaflik.org/hakkimizda/uluslararasi-seffaflik-orgutu/
- Uluslararası Şeffaflık Örgütü, www.transparency.org
- Voyer, P.A., Beamish, P.W. (2004), The Effect of Corruption on Japanese Foreign Direct Investment , Journal of Business Ethics, Sayı: 50 (3), ss. 211-224.
- Wei, S. (1997), Why is Corruption So Much More Taxing Than Tax? Arbitrariness Kills , NBER Working Paper Series, 6255.
- Wheeler, D., Mody, A. (1992), International Investment Location Decisions: The Case of U.S. Firms , Journal of International Economics, Sayı:33, ss. 57-76.
- WU, S. (2006), Corruption and Cross-Border Investment by Multinational Firms , Journal of Comparative Economis, Sayı: 34, ss. 839-856.
- Yalta, Y., Demir, İ.(2010), The Extent of Trade Mis-Invoicing in Turkey: Did Post- 1990 Policies Matter? , Munich Personal RePec Archive.
2018.06.01.ECON.02
alphanumeric journal
Pages 117-132
Received: Dec. 12, 2017
Accepted: April 5, 2018
Published: June 27, 2018
2018 Gezikol, B., Tunahan, H.
This is an Open Access article, licensed under Creative Commons Attribution-NonCommercial 4.0 International License.
scan QR code to access this article from your mobile device
Contact Us
Faculty of Transportation and Logistics, Istanbul University
Beyazit
Campus 34452 Fatih/Istanbul/TURKEY
Bahadır Fatih Yıldırım, Ph.D.
editor@alphanumericjournal.com
+ 90
(212) 440 00 00 - 13219
alphanumeric journal
alphanumeric journal has been publishing as "International Peer-Reviewed Journal" every six months since 2013. alphanumeric serves as a vehicle for researchers and practitioners in the field of quantitative methods, and is enabling a process of sharing in all fields related to the operations research, statistics, econometrics and management informations systems in order to enhance the quality on a globe scale.