Quality of government and regional trade: Evidence from European Union regions

Rodríguez-Pose, Andrés, Javier Barbero, Giovanni Madras and Rodríguez-Crespo, Ernesto
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose

No 15667, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper examines – using a novel database of regional trade flows between 267 European regions for 2013 – how government quality affects trade between European Union (EU) regions. The results of a structural gravity cross-sectional analysis of trade show that trade across EU regions is highly influenced by differences in regional government quality. This influence varies by sector of economic activity and by the level of economic development of the region. The results indicate that, if the less developed regions of the EU want to engage in greater interregional trade, improving their institutional quality is a must.

Keywords: Trade; Quality of government; Institutions; Regional policy; Gravity model of trade; Structural estimation (search for similar items in EconPapers)
JEL-codes: E02 F15 R10 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-geo, nep-int, nep-mac, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Working Paper: Quality of government and regional trade: Evidence from European Union regions (2021)
Working Paper: Quality of government and regional trade: evidence from European Union regions (2021)
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