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Does corruption hinder trade for the new EU members?

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  • Horsewood, Nicholas
  • Voicu, Anca Monika
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    Abstract

    The paper uses a gravity trade model to examine the impact of corruption on bilateral trade using a data set comprising OECD economies, new EU members and developing nations. Although the level of corruption of both the importing and exporting nations does hinder cross-border transactions, differences between their ethical standards do have a negative impact on trade flows. The model is used to assess the impact on exports and imports of Romania and Bulgaria joining the European Union. --

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    File URL: http://dx.doi.org/10.5018/economics-ejournal.ja.2012-47
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    File URL: http://econstor.eu/bitstream/10419/67477/1/731424352.pdf
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    Bibliographic Info

    Article provided by Kiel Institute for the World Economy in its journal Economics: The Open-Access, Open-Assessment E-Journal.

    Volume (Year): 6 (2012)
    Issue (Month): 47 ()
    Pages: 1-28

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    Handle: RePEc:zbw:ifweej:201247

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    Related research

    Keywords: trade; corruption; EU membership;

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    1. Dani Rodrik, 2000. "Institutions for High-Quality Growth: What They are and How to Acquire Them," NBER Working Papers 7540, National Bureau of Economic Research, Inc.
    2. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or Else? Free Trade Agreements in the Enlarged EU - A Gravity Model Estimate," Economics Working Papers 037, European Network of Economic Policy Research Institutes.
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