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Does corruption hinder trade for the new EU members?

  • Horsewood, Nicholas
  • Voicu, Anca Monika
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    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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    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): ()
    Pages: 1-28

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    Handle: RePEc:zbw:ifweej:201247
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    1. Rodrik, Dani, 2000. "Institutions For High-Quality Growth: What They Are And How To Acquire Them," CEPR Discussion Papers 2370, C.E.P.R. Discussion Papers.
    2. Eleanor Doyle & Inmaculada Martinez-Zarzoso, 2011. "Productivity, Trade, and Institutional Quality: A Panel Analysis," Southern Economic Journal, Southern Economic Association, vol. 77(3), pages 726-752, January.
    3. 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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