Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18586
Authors: 
Dreher, Axel
Siemers, Lars-H. R.
Year of Publication: 
2005
Series/Report no.: 
RWI Discussion Papers 35
Abstract: 
The paper develops a theoretical model showing a mutual relationship between corruption and capital account restrictions. According to the model, higher corruption induces stricter restrictions and vice versa. We test the model using panel data for 112 countries over the period 1984?2002 and find that corruption and restrictions are indeed mutually determined. Estimating the model simultaneously, capital account restrictions induce higher corruption. Higher corruption, in turn, is associated with more restrictions on the capital account.The empirical relationship is,however, not completely robust.
Subjects: 
Corruption
capital account restrictions
dynamic panel
JEL: 
O17
C33
H26
D19
G11
F33
Document Type: 
Working Paper

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