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Governance, corruption, and trade in the Asia Pacific region

Author

Listed:
  • Abe, Kazutomo
  • Wilson, John S.
Abstract
This paper examines the impact of reducing corruption and improving transparency to lower trade costs in the Asia Pacific Economic Cooperation region. The authors find, based on a computable general equilibrium model, significant potential trade and welfare gains for Asia Pacific Economic Cooperation members, with increased transparency and lower levels of corruption. Results suggest that trade in the region would increase by 11 percent and global welfare would expand by $406 billion by raising transparency to the average in the region. Most of the increase in welfare would take place in member economies undertaking reform. Among the reformers, the gross domestic product of Vietnam, Thailand, Russia, and the Philippines would increase approximately 20 percent. The benefits to Malaysia and China would also be substantial with increased transparency and lower levels of corruption.

Suggested Citation

  • Abe, Kazutomo & Wilson, John S., 2008. "Governance, corruption, and trade in the Asia Pacific region," Policy Research Working Paper Series 4731, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4731
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    Citations

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    Cited by:

    1. Ugur, Mehmet & Dasgupta, Nandini, 2011. "Corruption and economic growth: A meta-analysis of the evidence on low-income countries and beyond," MPRA Paper 31226, University Library of Munich, Germany, revised 31 May 2011.
    2. Yushi, Jiang & Borojo, Dinkneh Gebre, 2019. "The impacts of institutional quality and infrastructure on overall and intra-Africa trade," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-34.
    3. Portugal-Perez, Alberto & Wilson, John S., 2012. "Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure," World Development, Elsevier, vol. 40(7), pages 1295-1307.
    4. Zahid Hussain & Nadia Hanif & Wasim Abbas Shaheen & Muhammad Nadeem, 2019. "Empirical Analysis of Multiple Infrastructural Covariates: An Application of Gravity Model on Asian Economies," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(3), pages 299-317, March.
    5. Valery Leonidovich Makarov & Albert Raufovich Bakhtizin & Elena Davidovna Sushko & Maria Alekseevna Burilina, 0. "Development of Mathematical Model for a Quantitative Assessment of Consequences of Illegal Financial Operations," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management., issue 3.
    6. V. Makarov L. & A. Bakhtizin R. & B. Khabriev R. & В. Макаров Л. & А. Бахтизин Р. & Б. Хабриев Р., 2018. "Оценка эффективности механизмов укрепления государственного суверенитета России // Performance Evaluation of the Mechanisms Strengthening the State Sovereignty of Russia," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 22(5), pages 6-26.
    7. Yue Li & John S. Wilson, 2009. "Trade Facilitation and Expanding the Benefits of Trade: Evidence from Firm Leval Data," Working Papers 7109, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    8. Muzafar Shah Habibullah* & Badariah Haji Din & Wei-Chong Choo & Siow-Hooi Tan, 2018. "The Number of Tourist Arrivals, Governance and Their Impact on Threatened Bird Species: Worldwide Evidence," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 28-36:6.
    9. durongkaveroj, wannaphong, 2015. "The Next Chapter of ASEAN Economic Community through Integrating with the existing FTA partners (RCEP), Turkey, and Pakistan," MPRA Paper 63421, University Library of Munich, Germany.
    10. Mamta Kumari & Nalin Bharti, 2020. "What Drive Trade Costs? South Asia and Beyond," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 21(2), pages 258-280, September.
    11. Kang, Sungwon & Kim, Daehwan & Kim, Geonhyeong, 2023. "Corporate entertainment expenses and corruption in public procurement," Journal of Asian Economics, Elsevier, vol. 84(C).
    12. Andrey S. KAUKIN, Alexander TOMAEV, Pavel PAVLOV, 2020. "Russian Domestic Trade: Applying the Gravity Mode for Rail Cargo Flows [Внутренняя Торговля России: Применение Гравитационной Модели]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 60-89, November.
    13. Jessie Lin & Insa Flachsbarth & Stephan von Cramon‐Taubadel, 2020. "The role of institutional quality on the performance in the export of coconut products," Agricultural Economics, International Association of Agricultural Economists, vol. 51(2), pages 237-258, March.
    14. Kodila Tedika, Oasis, 2012. "Consequences De La Corruption : Panorama Empirique [Consequences of Corruption : Empirical survey]," MPRA Paper 41482, University Library of Munich, Germany.
    15. MILE 13, Truong Giang Hoang & Nguyen, Tu Anh & Nguyen, Thu Thuy, 2014. "Trade facilitation in ASEAN members - a focus on logistics policies towards ASEAN economic community," Papers 918, World Trade Institute.

    More about this item

    Keywords

    Economic Theory&Research; Free Trade; Trade Policy; Emerging Markets; Currencies and Exchange Rates;
    All these keywords.

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