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Economic integration and corruption: The corrupt soul of the European Union

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Author Info

  • Juan J. Ganuza

    ()

  • Esther Hauk

Abstract

We study the link between corruption and economic integration. We show that if an economic union establishes a common regulation for public procurement, the country more prone to corruption benefits more from integration. However, if the propensities to corruption are too distinct, the less corrupt country will not be willing to join the union. This difference in corruption propensities can be offset by a difference in efficiency. We also show that corruption is lower if integration occurs. A panel data analysis for the European Union confirms that more corrupt countries are more favorable towards integration but less acceptable as potential new members.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/482.pdf
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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 482.

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Date of creation: Jun 2000
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Handle: RePEc:upf:upfgen:482

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Web page: http://www.econ.upf.edu/

Related research

Keywords: Corruption; procurement; economic integration;

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Cited by:
  1. Claudio Weber Abramo, 2003. "Prevention and detection in bribery-affected public procurement," Public Economics 0309001, EconWPA.

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