Discussion Paper

No. 2011-53 | December 09, 2011
Does Corruption Facilitate Trade for the New EU Members?


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.

Paper submitted to the special issue
Trade Facilitation, Transport Costs and Logistics: A New Challenge for European Competitiveness

JEL Classification:

F14, F15


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Cite As

Nicholas Horsewood and Anca Monika Voicu (2011). Does Corruption Facilitate Trade for the New EU Members? Economics Discussion Papers, No 2011-53, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2011-53

Comments and Questions

Anonymous - Referee Report 1
January 10, 2012 - 11:37

see attached file

Konstantin M. Wacker - Referee Report 2
January 11, 2012 - 12:15

see attached file

Nicholas Horsewood - Response to Referee Reports
March 26, 2012 - 08:45

see attached file