'Corruption Distance and Heterogeneous Effects of Trade Agreements on Trade'

The Global Studies Seminar presents “Corruption Distance and Heterogeneous Effects of Trade Agreements on Trade” by Denison University’s Assistant Professor of Global Commerce Oksana Grabova. 

We examine the impact of corruption level disparities among member countries of a trade agreement on their trade flows. Within the framework of a Trade Agreement (TA), our analysis focuses on how these disparities might affect trade expansion among member nations. Utilizing trade data spanning from 1996 to 2017, our study employs a bilateral gravity model to assess the trade volume from one country to another, factoring in the influence of corruption differences alongside TA membership. Our findings suggest a nuanced interaction between TA membership and corruption disparities: while significant differences in corruption levels can foster an increase in the trade of new products between member countries, they may conversely hinder the exchange of established goods. This phenomenon is particularly pronounced in transactions involving low-income countries, indicating that while TAs can facilitate trade expansion, the variance in corruption levels presents a complex dynamic, especially in the trade of existing goods among less developed nations. 

Grabova comes to Denison from Georgia College & State University, where she was a lecturer in economics. She earned her bachelor’s and master’s degrees in finance and credit from Sevastopol National Technical University in Ukraine and a master’s and Doctor of Philosophy in economics from Southern Illinois University Carbondale. Situated at the intersection of international trade and economic development, her research centers on evaluating the efficacy of trade agreements in light of varying socio-economic environments across nations.