Does corruption hinder trade for the new EU members?
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.
Volume (Year): 6 (2012)
Issue (Month): ()
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- 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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- 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.
- 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.
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