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Quality of government and regional trade: evidence from European Union regions

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  • Javier Barbero
  • Giovanni Mandras
  • Ernesto Rodríguez-Crespo
  • Andrés Rodríguez-Pose

Abstract

Using a novel database of regional trade flows between 267 European regions for 2013, this paper examines how government quality affects trade between European Union (EU) regions. The results of a structural gravity cross-sectional analysis of trade show that trade across EU regions is highly influenced by differences in regional government quality. This influence varies by both sector of economic activity and the level of economic development of the region. The results indicate that if the less developed regions of the EU want to engage in greater interregional trade, improving their institutional quality is a must.

Suggested Citation

  • Javier Barbero & Giovanni Mandras & Ernesto Rodríguez-Crespo & Andrés Rodríguez-Pose, 2021. "Quality of government and regional trade: evidence from European Union regions," Regional Studies, Taylor & Francis Journals, vol. 55(7), pages 1240-1251, July.
    • Handle: RePEc:taf:regstd:v:55:y:2021:i:7:p:1240-1251
    DOI: 10.1080/00343404.2021.1873934
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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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