NSU Research Contributions
Title : The Impact of Corruption on the Black Market Premium
Authors : Mohsen Bahmani-Oskooee, Gour Goswami
| Journal Title: Southern Economic Journal | Volume Number: 71 | Publication Year : 2005 | Issue Number: 3 |
| Index: scopus | Ranking: Q2 | ISSN: 0038-4038 | Publisher Name: Wiley |
| Pages : 483-493 | |||
| ISBN : 2325-8012 | |||
| Funding Source : None |
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Direct Sustainable Development Goals : SDG8 Decent Work & Economic Growth SDG9 Industry, Innovation & Infrastructure |
Indirect Sustainable Development Goals : SDG8 Decent Work & Economic Growth SDG9 Industry, Innovation & Infrastructure |
Sustainable Development Sub Goals : Sustain per capita economic growth Strengthen financial institutions’ access and capacity Increase trade support for least developed countries Support infrastructure in developing countries |
| Impact statement: Recently, the impact of institutional factors on macro variables has been gaining momentum. Researchers have investigated the impact of corruption, law and order, and bureaucracy on economic growth, inflation, investment, productivity, and the real exchange rate. In this article, we investigate empirically the impact of institutional factors on the black market premium. In many developing nations, due to government restrictions on capital and trade flows, a black market for foreign exchange exists. Using data from 60 developing countries over the 1982-1995 period, we show that the black market premium is higher in countries with greater corruption. This finding appears insensitive to five different measures of corruption and to whether cross-sectional or panel data are used. | Collaboration: Partner University | Keywords: Corruption, Black Market Premium, Foreign Exchange, Black Market Exchange Rate |
