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Quality of government and regional trade in the EU

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Abstract

The quality of government and institutions is crucial in determining the socio-economic impact of policies. The European Commission is increasingly underlining the value of good governance and, in 2010, the Directorate-General for Regional and Urban Policy (DG REGIO) started funding research to gather data on the regional quality of government in collaboration with the University of Gothenburg. The analysis reported here presents, for the first time, evidence on the impact of government quality on regional trade flows in the European Union. The returns to trade depend on the quality of government, meaning that the implementation of place-based territorial policies becomes relevant to maximise economic growth, regional development and the gains from trade.

Suggested Citation

  • Javier Barbero & Giovanni Mandras & Ernesto Rodríguez-Crespo & Andrés Rodríguez-Pose, 2021. "Quality of government and regional trade in the EU," JRC Research Reports JRC124475, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc124475
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC124475
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    Cited by:

    1. Peiró-Palomino, Jesús & Rodríguez-Crespo, Ernesto & Suárez-Varela, Marta, 2022. "Do countries with higher institutional quality transition to cleaner trade?," Ecological Economics, Elsevier, vol. 201(C).

    More about this item

    Keywords

    quality of government; institutions; regional policy; gravity model of trade; structural estimation; rhomolo;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • F15 - International Economics - - Trade - - - Economic Integration
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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