Analysis of the Effect of Corruption on Industrial Exports Value (Case Study: The Selected Developing Countries)

Abstract

Owing to its close relationship with production, technology and governance, industrial exports have considerable effects on countries ’economy. Export is affected by several factors and there are abundance of studies and theories in this field; however, the effect of institutional factors on exportation has not received much appropriate attention. This study, therefore, investigates the effect of corruption control indicator, as a key institutional component, on exportation of industrial products using Panal data. Furthermore, the population consists of 14 developing countries during the period 2002–2012. The results of the estimation model confirm the positive and significant effect of corruption control on export industries of the selected countries. Along with explanatory variable of the corruption control, the variables of exchange rate and income were examined as well, which indicate the negative and significant effect of the real exchange rate and positive and significant effect of countries ’income on export industries. The results of the present study demonstrate that in these countries, in order to have an appropriate plan for the development of industrial exports from policymakers, proper assessment of institutional components like corruption control must be taken into account.