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

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

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Using a novel database of regional trade flows between 267 European regions for 2013, this paper examines 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 both sector of economic activity and 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: L81 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2021-07-03
New Economics Papers: this item is included in nep-eur, nep-geo, nep-int, nep-isf and nep-ure
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Published in Regional Studies, 3, July, 2021, 55(7), pp. 1240 - 1251. ISSN: 0034-3404

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http://eprints.lse.ac.uk/108211/ Open access version. (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
Working Paper: Quality of government and regional trade: Evidence from European Union regions (2021) Downloads
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