Quality of government and regional trade in the EU

Javier Barbero, Giovanni Mandras, Ernesto Rodriguez-Crespo and Andrés Rodríguez-Pose

No JRC124475, JRC Research Reports from Joint Research Centre

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.

Keywords: quality of government; institutions; regional policy; gravity model of trade; structural estimation; rhomolo (search for similar items in EconPapers)
JEL-codes: E2 F15 R10 (search for similar items in EconPapers)
Pages: 4 pages
Date: 2021-04
New Economics Papers: this item is included in nep-mac, nep-sbm and nep-ure
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ipt:iptwpa:jrc124475

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