Estimations of the impact of corruption on trade with the structural corruption index
| Variables | (1) Pooled OLS | (2) Fixed effects | (3) OLS CYFE and CPFE | (4) PPML CYFE and CPFE |
|---|---|---|---|---|
| lnYi | 1.003 (0.012)*** | 0.704 (0.043)*** | – | – |
| lnYj | 0.814 (0.011)*** | 0.738 (0.042)*** | – | – |
| lndist | −0.967 (0.032)*** | – | – | – |
| contiguity | 0.790 (0.128)*** | – | – | – |
| comlang | 0.472 (0.063)*** | – | – | – |
| colony | 1.045 (0.106)*** | – | – | – |
| comctry | 3.555 (0.158)*** | – | – | – |
| island | 0.374 (0.157)** | – | – | – |
| landlocked | −0.520 (0.050)*** | – | – | – |
| religion | −0.233 (0.078)*** | – | – | – |
| RTA | 0.373 (0.075)*** | 0.172 (0.089)** | 0.279 (0.086)*** | 0.330 (0.054)*** |
| CU | 1.159 (0.273)*** | −0.237 (0.356) | −0.001 (0.340) | 0.251 (0.095)*** |
| SCIij | −1.247 (0.144)*** | 1.153 (0.202)*** | 4.691 (1.231)** | 1.029 (0.480)** |
| SCIi-SCIj | −0.292 (0.114)*** | −0.601 (0.177)*** | −0.233 (0.259) | −0.488 (0.168)*** |
| Time dummies | Yes | Yes | No | No |
| CPFE | No | Yes | Yes | Yes |
| CYFE | No | No | Yes | Yes |
| R2 | 0.67 | 0.24 | 0.37 | 0.99 |
| Observations | 15,863 | 15,863 | 16,579 | 19,178 |
| Variables | (1) Pooled OLS | (2) Fixed effects | (3) OLS CYFE and CPFE | (4) PPML CYFE and CPFE |
|---|---|---|---|---|
| lnYi | 1.003 (0.012) | 0.704 (0.043) | – | – |
| lnYj | 0.814 (0.011) | 0.738 (0.042) | – | – |
| lndist | −0.967 (0.032) | – | – | – |
| contiguity | 0.790 (0.128) | – | – | – |
| comlang | 0.472 (0.063) | – | – | – |
| colony | 1.045 (0.106) | – | – | – |
| comctry | 3.555 (0.158) | – | – | – |
| island | 0.374 (0.157) | – | – | – |
| landlocked | −0.520 (0.050) | – | – | – |
| religion | −0.233 (0.078) | – | – | – |
| RTA | 0.373 (0.075) | 0.172 (0.089) | 0.279 (0.086) | 0.330 (0.054) |
| CU | 1.159 (0.273) | −0.237 (0.356) | −0.001 (0.340) | 0.251 (0.095) |
| SCIij | −1.247 (0.144) | 1.153 (0.202) | 4.691 (1.231) | 1.029 (0.480) |
| SCIi-SCIj | −0.292 (0.114) | −0.601 (0.177) | −0.233 (0.259) | −0.488 (0.168) |
| Time dummies | Yes | Yes | No | No |
| CPFE | No | Yes | Yes | Yes |
| CYFE | No | No | Yes | Yes |
| R2 | 0.67 | 0.24 | 0.37 | 0.99 |
| Observations | 15,863 | 15,863 | 16,579 | 19,178 |
Notes:
Sample period: 1978, 1983, 1988 and 1994. Dependent variable: log of bilateral exports for Column (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. SCI: Structural Corruption Index. The Hausman test result for random effects vs fixed effects is 351.59 (0.00)
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