How export shocks corrupt: theory and evidence
February 11, 2021
Joël Cariolle (FERDI) introduced the main findings of his research paper : Cariolle J., Imbruno M., de Melo J. (2020) "Bilateral digital connectivity and firm participation in export markets", Ferdi Document de travail P270, septembre
"This paper studies how bilateral digital connectivity resulting from telecommunications submarine cable (SMC) deployment affects firm participation in export markets."
Petros Sekeris (Montpellier Business School) introduced the main findings of his research paper :Cariolle J., Sekeris P.G. (2021) How export shocks corrupt: theory and evidence, FERDI Document de travail P282, février
"In this article we uncover a positive effect of both export booms and busts on firm-level corruption. Our theory highlights that for firms operating in low-exports environments and/or in poor human capital settings, export-related revenues are highly elastic to incremental gains of export shares thence incentivizing firms to intensify corruption with exportbusts. By contrast, in export-oriented and/or high human capital environments, export booms increase the relative profitability of bribing compared to productive investments. We corroborate these findings with an extensive database of some 45,000 firms from 72 developing and transition economies, surveyed over 2006-2017. We also show a corruption-deterrent effect institutional quality during export market expansion and contraction. "
