ECONOMIC INTEGRATION AND CORRUPTION : the Corrupt Soul of the European Union ¤

  • Juan-Jose Ganuzayand, Esther Haukz, +4 authors Ignacio Pérez
  • Published 2001


We study the link between corruption and economic integration. Integration is modeled by a common regulation for public procurement. We show that integration resolves a terms-of-trade-driven prisoner's dilemma and will always take place in the absence of corruption. Corruption may destroy the incentives for integration. If the propensities to corruption are… (More)