Register  |  Login  |  Inquiries  |  Sitemap
Advanced Search
Journal of Economic Integration 2013 December;28(4) :610-630.
Intensity of Trade with the EU and Corruption in Africa
Omer Gokcekus and 
Yui Suzuki 
Seton Hall University, South Orange, U. S. A.
Corresponding Author: Omer Gokcekus ,Tel: +1 9733136272, Fax: +1 9732752519, Email:
Copyright ©2013 Journal of Economic Integration
Via partnership agreements, the EU provides African countries with access to its markets and asks for compliance with a given set of good governance norms and procedures. While the EU markets are significant for African countries, African markets are not significant for the EU. This asymmetric relationship should give the EU the power to “convince” the African countries to adopt better governance practices. Results from panel data regression analyses indicate that for 34 African countries, an increase in the intensity of trade and imports from the EU between 1984~2009 reduced the level of corruption, but not always the intensity of exports to the EU. These findings do not provide strong evidence in favor of the idea that the EU has effectively used its asymmetric trade relationship in convincing African countries to adopt better governance practices, but they consistently support alternative-rival-hypotheses, namely trade openness and imports-as-market discipline hypotheses.

JEL Classification
C23: Models with Panel Data; Longitudinal Data; Spatial Time Series
F14: Empirical Studies of Trade
O10: General
Keywords: Intensity of Trade | Conditionality | Corruption | European Union | Africa
1. Ademola, O. T., Bankole, A. S., and Adewuyi, A. O. 2009. China–Africa trade relations: Insights from AERC scoping studies. European Journal of Development Research 21: 485–505
2. Ades, A., Di Tella, R., 1999. Rents, competition and corruption. American Economic Review 89: 982–993.
3. Alden, C. 2005. Leveraging the dragon: Toward “an Africa that can say No”. Yale Global Online Magazine.
5. Bird, G. 2008. The implementation of IMF programs: A conceptual framework. Review of International Organizations 3: 41-64. Bonaglia, F., de Macedo, J.B., Bussolo, M., 2001. How globalization improves governance. OECD Technical
6. Papers, vol. 181.
7. Chowdhury, S. K. (2004). The effect of democracy and press freedom on corruption: An empirical test.Economics Letters 85: 93-101. Dincer, O. C. 2008. Ethnic and religious diversity and corruption. Economics Letters 99: 98-102. ECDPM. 2010. The EU and Africa: The Policy Context for Development. London: Bond for International
8. Development. European Commission. 2010. The Cotonou Agreement. Ethier, D. 2003. Is democracy promotion effective? Comparing conditionality and incentives. Democratization
9. 10(1): 99–120.
10. Gatti, R., 1999. Corruption and trade tariffs, or a case for uniform tariffs. Policy Research Working Paper, vol.2216. World Bank, Washington, D.C. Glaeser, E.L., Saks, R.E., 2004. Corruption in America. NBER Working Paper 10821. Goel, R, V., and Nelson, M. A. 2005. Economic freedom versus political freedom: Cross country influences on
11. 8 For different aspects of China’s relationship with Africa, see the 2009 special issue, 21(4), “China in Africa: A relationship inTransition,” of the European Journal of Development Research.
12. Goel, R, V., and Nelson, M. A. 2005. Economic freedom versus political freedom: Cross country influences oncorruption. Australian Economic Papers 44: 121-133.
13. Gokcekus, O. 1997. Trade liberalization and productivity growth: New evidence from the Turkish rubberindustry. Applied Economics 29: 639-645.
14. Gokcekus, O. and Knoerich, J. 2006. Does quality of openness affect corruption? Economics Letters 91: 190¬
16. De Grauwe, P., Houssa, R., Piccillo, G. 2012. African trade dynamics: Is China a different trading partner?Journal of Chinese Economic and Business Studies 10: 15-45. Greene, W. H. 2011. Econometric Analysis. Prentice Hall, New Jersey. Haughton, T. 2007. When does the EU make a Difference? Conditionality and the Accession Process in Central
17. and Eastern Europe. Political Studies Review 5(2), 233–246. Hirschman, A. O. 1945. National Power and the Structure of Foreign Trade. California: University of California Press.
18. Jianbo, L. and Xiaomin, Z. 2011. Multilateral cooperation in Africa between China and Western countries:from differences to consensus. Review of International Studies 37: 1793–1813.
19. Knack, S. and Azfar, O. 2003. Trade intensity, country size and corruption. Economics of Governance 4: 1-18. Kohpaiboon, A. 2010. ‘Imports-as-Market Discipline Hypothesis: Evidence from the Thai Manufacturing
20. Sector’, in Hahn, C. H. and D. Narjoko (eds.), Causes and Consequences of Globalization in East Asia: WhatDo the Micro Data Analyses Show? ERIA Research Project Report 2009-2, Jakarta: ERIA. Pp. 268-312. Krueger, A.O., 1974. The political economy of rent-seeking society. American Economic Review 64: 291–303. Levinsohn, J. 1993. Testing the Import-as-Market-Discipline Hypothesis. Journal of International Economics,
21. 35: 1-22.
22. de Melo, J. and Urata, S. 1986. The Influence of Increased Foreign Competition on Industrial Concentration and Profitability. International Journal of Industrial Organization 4: 286-304.
23. Min, B. (1999) “Competition Effects of Import Discipline in Korea.” Journal of the Asia Pacific Economy,4(2): 298-316.
24. Mohtadi, H. and Roe, T. L. (2003). Democracy, Rent Seeking, Public Spending and Growth. Journal of Public Economics 87: 445-466.
25. Nottebaum, D. 2012. ‘A Power Through Trade? The European Union and Democracy Promotion in ACPStates’ in Fels, E., J. Kremer, and K. Kronenberg (eds.), Power in the 21st Century: Global Power Shift. Berlin: Springer-Verlag. Pp. 237-268.
26. Rose-Ackerman, S., 1999. Corruption and Government: Causes, Consequences, and Reform. CambridgeUniversity Press, Cambridge, U.K..
27. Schimmelfennig, F., Engert, S. and Knobel, H. 2003. Costs, commitment and compliance: the impact of EUdemocratic conditionality on Latvia, Slovakia and Turkey. Journal of Common Market Studies 41(3): 495–518.
28. Shleifer, A. and Vishny, R. W. 1993. Corruption. Quarterly Journal of Economics 108: 599-617.
29. Treisman, D. 2000. The causes of corruption: A cross-national study. Journal of Public Economics 76: 399-457.
30. Tull, D. M. 2006. China’s engagement in Africa: scope, significance and consequences. Journal of Modern African Studies 44: 459–479.
31. Vanhanen, T., 1999. Domestic ethnic conflict and ethnic nepotism. Journal of Peace Research 36, 55–73.
32. Wei, S.J., 2000. Natural openness and good government. NBER Working Paper, vol. 7765. Cambridge, MA.
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
Supplement  Supplement
Editorial Office
Center for Economic Integration, Sejong Institution, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-3408-3338   E-mail :
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration. All right reserved.