An extended small open economy model is developed and used to examine the effect of trade on the illicit expropriation of incomes and the provision of legal services. We derive conditions under which trade liberalization will reduce expropriation activities. We also derive sufficient conditions...

Recent studies have found that tariff reductions on imported intermediate inputs are associated with increased firm level productivity and higher wages. Nevertheless, little is known about the impact on firm level employment in developing economies. Using establishment and industry tariff level...