ABSTRACT

The commonly accepted definition of corruption is ‘the abuse of public power for private benefit’. Corruption exists in all countries and at all levels of society and government. It is one of the biggest global problems, which affects a number of economic behaviours. International trade, as a primary accelerator of economic growth, is generally hampered by corruption [1]. Some researchers have studied the relationships between international trade and corruption within countries [2–5]. Furthermore, Knorich [6] finds that the corruption levels in different countries are correlated, indicating that corruption occurring in one country may have repercussions for corruption in other countries. These cross-country interactions between trade and corruption suggest that domestic corruption 70levels can be influenced through trading with more or less corrupt countries.