Publication detail

OECD Anti-Bribery Policy and Structural Differences Inside the EU

Author(s): Mgr. Eva Michalíková ,
Mgr. Michal Paulus ,
Type: IES Working Papers
Year: 2016
Number: 23
ISSN / ISBN:
Published in: IES Working Papers 23/2016
Publishing place: Prague
Keywords: gravity model; OECD anti-bribery convention; international conflict; policy preference mapping; EU heterogeneity
JEL codes: F14, F42, F51, F53, F55, O17
Suggested Citation: Paulus M., Michalikova E. (2016). " OECD Anti-Bribery Policy and Structural Differences Inside the EU” IES Working Paper 23/2016. IES FSV. Charles University.
Grants: GACR 402/16-02392S Competitiveness and Exchange Rate: Institutions and Innovations
Abstract: We propose a novel application of a gravity model of trade as a policy preference mapping tool that reveals areas of potential interest groups formation. We examine a hypothesis that the EU’s inability of the coordinated anti-corruption effort is caused by its internal heterogeneity in preferences towards the anti-corruption policy. We focus only on anti-corruption effort of EU members against bribery in foreign transaction which is reflected in the effectiveness of the enforcement of the OECD anti-bribery convention. Using the gravity model of trade, we estimate and compare preferences of western, eastern and Mediterranean EU members towards the enforcement of the convention. In addition to the aggregate exports we estimate the model on disaggregated data and examine preferences across trading sectors and identify those industries which would support or oppose the anti-corruption policy. To analyse the hypothesis, we estimate a micro-founded augmented gravity model for bilateral exports of 131 countries within period 1995-2013. The results reveal significant differences between western and eastern EU members when the eastern countries are much more motivated to oppose the policy and to form a strong interest group also on the EU level. The policy preferences of Mediterranean EU members are surprisingly closer to their western partners than to the members from the Central and Eastern Europe. There are also specific sectors which have potential to form a coalition towards the policy across all country groups. We have found out that the country origin (country group to which it belongs) is much better predictor of the policy preferences than the exporting sector.
Downloadable: wp_2016_23_paulus

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