Investigation of Effects of Corruption on Trade and Financial Globalization in BRICS-T Countries

Although the globalization processes of countries have been examined in the context of many economic variables, institutional structure affecting these economic variables has been emphasized more frequently in recent years. Undoubtedly, one of the important elements of this institutional structure is corruption. Corruption, together with increasing economic globalization, significantly affects the commercial and financial relations of countries with the other countries. In the present study, taking this importance into consideration, the relationship between globalization and corruption has been analyzed within the scope of BRICS-T countries, which are emphasized as economies with the potential to shape the future. The findings of Westerlund cointegration analysis, which covers the period 1996-2017, have not revealed long-term relationship between trade globalization and corruption. However, the findings for Russia and Brazil have revealed positive long-term relationship between financial globalization and corruption. In other words, the more control of corruption, the more financial globalization within these countries.