Economic Integration and Corruption: The Corrupt Soul of the European Union

Universitat Pompeu Fabra Working Paper No. 482

33 Pages Posted: 5 Oct 2000

See all articles by Juan-José Ganuza

Juan-José Ganuza

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Esther Hauk

Instituto de Análisis Económic (IAE) Barcelona

Date Written: 2000

Abstract

We study the link between corruption and economic integration. We show that if an economic union establishes a common regulation for public procurement, the country more prone to corruption benefits more from integration. However, if the propensities to corruption are too distinct, the less corrupt country will not be willing to join the union. This difference in corruption propensities can be offset by a difference in efficiency. We also show that corruption is lower if integration occurs. A panel data analysis for the European Union confirms that more corrupt countries are more favorable towards integration but less acceptable as potential new members.

Keywords: Corruption, Procurement, Economic Integration

JEL Classification: D72, F15, H57, C23

Suggested Citation

Ganuza, Juan and Hauk, Esther, Economic Integration and Corruption: The Corrupt Soul of the European Union (2000). Universitat Pompeu Fabra Working Paper No. 482, Available at SSRN: https://ssrn.com/abstract=235679 or http://dx.doi.org/10.2139/ssrn.235679

Juan Ganuza (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
(34-93) 542 27 19 (Phone)
(34-98) 542 17 46 (Fax)

Esther Hauk

Instituto de Análisis Económic (IAE) Barcelona ( email )

Barcelona, Bellaterra 08193
Spain

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