Rajib Sanyal and Subarna Samanta
Using indices of bribe for 19 countries, this study examines the determinants of bribe paying in international business. There is a strong positive correlation between countries…
Abstract
Using indices of bribe for 19 countries, this study examines the determinants of bribe paying in international business. There is a strong positive correlation between countries where bribe taking is highly prevalent and those countries that are most likely to offer bribes. The propensity to give bribes is determined by economic factors such as per capita income and degree of economic freedom in the country, cultural factors such as power distance and masculinity; and legal regulatory factors such as accounting and tax treatment of bribes. It appears that, to eliminate international bribery, the supply side needs to be addressed in addition to the demand for bribes.
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Brian T. Grube and Subarna K. Samanta
The behavior of current account balance and the value of the domestic currency has been a focal point of much policy discussion for a long time. Most of the OECD countries have…
Abstract
The behavior of current account balance and the value of the domestic currency has been a focal point of much policy discussion for a long time. Most of the OECD countries have experienced volatile exchange rates as well as current account deficits for most of the last two decades. Conventional wisdom holds that appreciation of domestic currency leads to increased trade deficit and vice versa. This paper examines the long run equilibrium relation between exchange rate risk and the volume of foreign trade in Mexico. Mexico is one of the countries in Latin America that has been moving towards a free market economy, featuring free trade as the main driving force behind its endeavor for economic development. So, it is of keen interest to examine how the exchange rate fluctuations and its uncertainty has influenced the economy during such institutional changes.
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Hamid Beladi and Subarna K. Samanta
This article analyses the welfare implications of the customsunions in the presence of multinational corporations for a less thanfully employed small open economy. The traditional…
Abstract
This article analyses the welfare implications of the customs unions in the presence of multinational corporations for a less than fully employed small open economy. The traditional two‐sector model, with a specific factor for the multinational corporation, is employed for this purpose. This article suggests that both trade creations I and II improve the social welfare and employment of the small open economy if the multinational sector is relatively capital‐intensive. However, the welfare and the employment effects of trade diversion I are ambiguous whereas trade diversion II affects employment level negatively. These results are in contrast with the previous studies on the theory of customs unions.
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Rajib Sanyal and Subarna Samanta
This paper aims to examine whether the vigorous enforcement of anti‐bribery laws has had an impact on the propensity of firms to engage in bribe‐giving in international business.
Abstract
Purpose
This paper aims to examine whether the vigorous enforcement of anti‐bribery laws has had an impact on the propensity of firms to engage in bribe‐giving in international business.
Design/methodology/approach
A set of statistical analyses was performed on data – Bribe Payers Index, a measure of bribe‐giving – from four years spanning a nine‐year period to ascertain trends in bribe‐giving.
Findings
The results indicate that the perceived level of bribe‐giving by firms from the major exporting countries has been declining. This decline has occurred at a time when the enforcement of national anti‐bribery laws has been stepped up greatly and international treaties against bribe‐giving have been adopted and increasingly enforced.
Research limitations/implications
A robust legal approach to curb bribe‐giving appears to have a general deterrent effect on the propensity of firms based in the countries studied to engage in bribe‐giving. Data availability is limited to about 20 countries.
Practical implications
International cooperation among law enforcement agencies anchored in national laws and international treaties provide an effective basis to successfully prosecute bribe‐giving in international business.
Originality/value
This study strongly suggests that enforcement of national laws against bribe‐giving, coupled with cooperation among national governments, can play a significant role in reducing the perceived level of bribe‐giving in international business.
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George E. Nakos, Keith Brouthers and Robert Moussetis
The international economic trade environment has been transformed in recent years by the rise of several regional trade blocks. The most important of these regional trade…
Abstract
The international economic trade environment has been transformed in recent years by the rise of several regional trade blocks. The most important of these regional trade associations has been the European Union. Many Eastern European countries are currently applying to join this regional group, hoping that it will help their future economic growth. This paper examines the trade impact of EU membership on Portugal, a country that joined the EU in 1986. Portugal experienced significant positive and negative changes in its trade flows in the years following its EU entry. The analysis of the trade data for the first seven years following Portugal's accession shows a deterioration of the Portuguese trade deficit and a vary rapid re‐direction of Portuguese trade towards EU countries.