This paper analyzes the impact of corruption on bilateral trade flows, highlighting the dual role of corruption in terms of extortion and evasion. On one hand, corruption taxes trade, when corrupt customs officials in the importing country extort bribes from exporters (the extortion effect); on...

This paper tests the hypothesis that an increase in US trade with countries with weak effectiveness in the protection of intellectual property (IP) has expanded the threat of competitive imitation of US firms, and has contributed to the skill deepening of the 1980s. We draw on Thoenig and...