In the past, the study of international trade often focused on differences in labor, land and capital, as well as the distance between trading partners. But economists are increasingly looking at the role played by institutions, specifically those that enforce contracts and curb corruption.

We analyze the effects of outsourcing in the presence of a minimum wage by presenting a general-equilibrium model with an oligopolistic export sector and a competitive import-competing sector. An outsourcing tax is politically popular because it switches jobs to unemployed natives. It is also...

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...

Using cross-country time series data for 133 countries between 1984 and 2010, and implementing a fixed effects Poisson estimator using the gravity model of trade, we study the interaction between domestic and partner-country corruption and the treatment effect of a country joining the GATT-WTO...

This paper investigates the effect of corruption on trade openness in low-income and high-income countries. The results suggest corruption is anti-labor, since it reduces trade in low-income countries and increases trade in high-income countries.

This article investigates the effect of corruption on trade openness in low-income and high-income countries. The results suggest corruption is anti-labour, since it reduces trade in low-income countries and increases trade in high-income countries.