Dutt, Pushan; Traca, Daniel - In: The Review of Economics and Statistics 92 (2010) 4, pp. 843-860
We analyze the impact of corruption on bilateral trade, highlighting its dual role in terms of extortion and evasion. Corruption taxes trade, when corrupt customs officials in the importing country extort bribes from exporters (extortion effect); however, with high tariffs, corruption may be...