Estimations of the impact of corruption on trade with the corruption perception index
| Variables | (1) Pooled OLS | (2) Fixed Effects | (3) OLS CYFE and CPFE | (4) PPML CYFE and CPFE |
|---|---|---|---|---|
| lnYi | 1.154 (0.008)*** | 0.495 (0.013)*** | – | – |
| lnYj | 0.860 (0.007)*** | 0.727 (0.013)*** | – | – |
| lndist | −0.947 (0.024)*** | – | – | – |
| border | 1.148 (0.097)*** | – | – | – |
| contiguity | 0.872 (0.046)*** | – | – | – |
| colony | 0.436 (0.094)*** | – | – | – |
| comctry | 2.526 (0.110)*** | – | – | – |
| island | 0.188 (0.123) | – | – | – |
| landlocked | −0.492 (0.032)*** | – | – | – |
| religion | −0.171 (0.056)*** | – | – | – |
| RTA | 0.572 (0.044)*** | 0.203 (0.016)*** | 0.130 (0.017)*** | −0.017 (0.037) |
| CU | 0.034 (0.094) | 0.027 (0.037) | 0.219 (0.041)*** | 0.022 (0.030) |
| CPIij | −0.140 (0.011)*** | −0.166 (0.008)*** | −0.279 (0.043)*** | −0.019 (0.063) |
| CPi-CPj | −0.006 (0.007) | 0.004 (0.005) | 0.023 (0.008)*** | 0.005 (0.009) |
| Time dummies | Yes | Yes | No | No |
| CPFE | No | Yes | Yes | Yes |
| CYFE | No | No | Yes | Yes |
| R2 | 0.71 | 0.26 | 0.33 | 0.99 |
| Observations | 153,902 | 153,902 | 161,956 | 185,529 |
| Variables | (1) Pooled OLS | (2) Fixed Effects | (3) OLS CYFE and CPFE | (4) PPML CYFE and CPFE |
|---|---|---|---|---|
| lnYi | 1.154 (0.008) | 0.495 (0.013) | – | – |
| lnYj | 0.860 (0.007) | 0.727 (0.013) | – | – |
| lndist | −0.947 (0.024) | – | – | – |
| border | 1.148 (0.097) | – | – | – |
| contiguity | 0.872 (0.046) | – | – | – |
| colony | 0.436 (0.094) | – | – | – |
| comctry | 2.526 (0.110) | – | – | – |
| island | 0.188 (0.123) | – | – | – |
| landlocked | −0.492 (0.032) | – | – | – |
| religion | −0.171 (0.056) | – | – | – |
| RTA | 0.572 (0.044) | 0.203 (0.016) | 0.130 (0.017) | −0.017 (0.037) |
| CU | 0.034 (0.094) | 0.027 (0.037) | 0.219 (0.041) | 0.022 (0.030) |
| CPIij | −0.140 (0.011) | −0.166 (0.008) | −0.279 (0.043) | −0.019 (0.063) |
| CPi-CPj | −0.006 (0.007) | 0.004 (0.005) | 0.023 (0.008) | 0.005 (0.009) |
| Time dummies | Yes | Yes | No | No |
| CPFE | No | Yes | Yes | Yes |
| CYFE | No | No | Yes | Yes |
| 0.71 | 0.26 | 0.33 | 0.99 | |
| Observations | 153,902 | 153,902 | 161,956 | 185,529 |
Notes:
Sample period: 1995-2012. Dependent variable: log of bilateral exports for Columns (1) to (3) and bilateral exports in levels for Column (4). Robust standard errors (clustered by country-pairs) are in parentheses.
significant at 10%;
significant at 5%,
significant at 1%. OLS: Ordinary Least Squares. CYFE: Country-Year Fixed Effects. CPFE: Country-Pair Fixed Effects. PPML: Poisson Pseudo-Maximum Likelihood. CPI: Corruption Perception Index. The Hausman test result for random effects vs fixed effects is 2779.53 (0.00)
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