Corruption as a barrier to international trade

Baltezarević, Radoslav (2024) Corruption as a barrier to international trade. In: 10th International Black Sea Coastline Countries Scientific Research Conference, Samsun, Turkiye, 7-9 April, 2024. IKSAD Publications, pp. 220-225. ISBN 978-625-367-700-8

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Abstract

Corruption affects the economy and society as a whole in a wide range of ways. The rule of law, democracy, and economic growth are all threatened by corruption, which can take many different forms, including bribery, nepotism, embezzlement, extortion, kickbacks, money laundering, fraud, and conflicts of interest. It impedes economic expansion and has an impact on employment, investments, and corporate operations. If companies are reluctant or unable to engage in corruption, they are restricted or forbidden from providing their goods and services in that economy. The increasing interconnectedness of the global economy provides cover for unscrupulous criminal networks, which facilitate corrupt activities and hinder international trade. Many believe that globalization is the main culprit for the expansion of corruption in international trade. Although bribery occasionally acts as a kind of lubricant for stimulating international trade, this phenomenon is undesirable in the long run since it slows down economic progress by generating costs and inefficiencies. Of particular concern is the fact that the appearance of corruption in international trade can stigmatize the state, which can be seen as problematic regionally or globally. In that case, international companies will hesitate to invest and trade with that country because of the increased dangers and uncertainty. The government must devote substantial financial, material, and human resources to anti- corruption operations in order to monitor and combat corruption. However, the intricate correlation between government benefits and investment depends on a country's political and economic progress.

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