Discussion Paper

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

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.

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

JEL Classification

F14 F15

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

Assessment



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