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

Javier Barbero, Giovanni Mandras, Giovanni Mandras, Ernesto Ernesto Rodriguez-Crespo and Andrés Rodríguez-Pose ()
Authors registered in the RePEc Author Service: Giovanni Mandras ()

No 2102, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

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: 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, Revised 2021-01
New Economics Papers: this item is included in nep-eur, nep-geo, nep-int, nep-mac and nep-ure
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http://econ.geo.uu.nl/peeg/peeg2102.pdf Version January 2021 (application/pdf)

Related works:
Journal Article: Quality of government and regional trade: evidence from European Union regions (2021) Downloads
Working Paper: Quality of government and regional trade: Evidence from European Union regions (2021) Downloads
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