GTAP Resources: Resource Display
| GTAP Resource #4533 |
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"The impact of corruption on intra-SADC trade in agrifood products" by Makochekanwa, Albert Abstract 1 Introduction Studies on international trade suggest that corruption in ports and borders of entry (and exit) increases cost of trade (Yang, 2008; Clark et. al, 2004). However, given the complexity and nature of corruption, unavailability of data on actual bribe payments makes it difficult to understand how corruption affects the trade. Despite data problem, Sequeira and Djankov (2008) argue that ports provide fertile ground to analyze corrupt behaviour since opportunities for rent-seeking abound. Furthermore, that fact that ports represents an administrative monopoly over an essential public service with broad discretionary powers and scant institutional accountability implies that the probability of corruption happen can be very high. Makochekanwa et al (2010) argues that trade in agrifood at any level of cooperation, from bilateral to regional and from inter-regional to multilateral, remains more complex than any other sector, and varies across agreements (Aksoy, 2004). The situation is made worse by agriculture protection which still exists at WTO negotiation level, and which has meant that getting agrifood products across border remains a difficult, thus resulting in customs officials getting bribes to smooth the flow of these products. Previous studies and theoretical underpinnings the manner in which bribes are set and the mechanisms through which corruption affects the economy are ambiguous (Sequeira and Djankov, 2008). On the positive side and in line with the “corruption as grease” or “grease the wheels of trade” theory, bribes are considered to be set according to the time-preferences of private agents, resulting in corruption being an efficiency-enhancing by virtue of reducing delays in slow-moving queues for public services (Leff, 1964; Huntington, 1968; and Lui, 1985). In fact, Leff (1964) and Huntington (1968) argues that corruption can be efficiency enhancing because it removes government-imposed rigidities that impede investment and i... |
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- Agricultural policies - Non-Tariff barriers - Africa (Southern) |
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Public Access  GTAP Resource 4533 (273.9 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
