Does corruption facilitate trade for the new EU members?

Nicholas Horsewood and Anca Monika Voicu

No 2011-53, Economics Discussion Papers from Kiel Institute for the World Economy

Abstract: The paper uses a gravity model to examine the role of corruption in the direction of trade in a data set comprising OECD economies, new EU members and developing nations. Contrary to a number of studies, the findings suggest that membership of the RTAs does not always increase bilateral trade whereas reducing a country's corruption does tend to increase trade flows. The results suggest that EU membership, with the associated improvement in the perceived level of corruption, should have a positive impact on Romania and Bulgaria.

Keywords: trade; corruption; EU membership (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-int and nep-tra
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Citations: View citations in EconPapers (1)

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https://www.econstor.eu/bitstream/10419/54184/1/679728953.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201153

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