Journal Article
No. 2012-47 | December 03, 2012
Does Corruption Hinder Trade for the New EU Members?

Abstract

The paper uses a gravity trade model to examine the impact of corruption on bilateral trade using a data set comprising OECD economies, new EU members and developing nations. Although the level of corruption of both the importing and exporting nations does hinder cross-border transactions, differences between their ethical standards do have a negative impact on trade flows. The model is used to assess the impact on exports and imports of Romania and Bulgaria joining the European Union.

JEL Classification:

F14, F15

Assessment

  • Downloads: 2634 (Discussion Paper: 1875)

Links

Cite As

Nicholas Horsewood and Anca Monika Voicu (2012). Does Corruption Hinder Trade for the New EU Members? Economics: The Open-Access, Open-Assessment E-Journal, 6 (2012-47): 1–28. http://dx.doi.org/10.5018/economics-ejournal.ja.2012-47


Comments and Questions