The Role of Maastricht Criteria and Membership in Determining Convergence in the Eurozone and ASEAN: A Panel Data Analysis
AbstractThe effectiveness of The Maastricht Treaty (MT) to induce economic convergence in the area was questionable after some Eurozone countries hit by the recent economic crisis. Some studies showed that Maastricht Criteria (MC) as accession criteria for euro membership contributed to low growth in area. It is interesting to analyze the impact of MC and membership on income convergence in the Eurozone and compare it with Association of Southeast Asian Nation (ASEAN). Employing panel analysis, the purpose of this study is to comparatively analyze the income convergence with MC as control variables in the Eurozone and ASEAN during 1990-2009, or just one decade before and after the introduction of Euro coin. The result showed that both the Eurozone and ASEAN were unconditionally and conditionally converged, and also indicated the significance of MC in determining income convergence in both areas. The findings were interesting for policy makers, especially for ASEAN, which was in the process for implementing ASEAN Economic Community (AEC) by 2015.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Hiroshima University, Graduate School for International Development and Cooperation (IDEC) in its series IDEC DP2 Series with number 2-7.
Length: 13 pages
Date of creation: Feb 2012
Date of revision:
Exports; Convergence; ASEAN; The Eurozone; Maastricht Criteria;
Find related papers by JEL classification:
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ville Kaitila, 2005.
"Integration and Conditional Convergence in the Enlarged EU Area,"
Economics Working Papers
031, European Network of Economic Policy Research Institutes.
- Kaitila, Ville, 2004. "Integration and Conditional Convergence in the Enlarged EU Area," Discussion Papers 935, The Research Institute of the Finnish Economy.
- Andrew B. Bernard & Steven N. Durlauf, 1994.
"Interpreting Tests of the Convergence Hypothesis,"
NBER Technical Working Papers
0159, National Bureau of Economic Research, Inc.
- Richard E. Baldwin & Rikard Forslid, 1996.
"Trade Liberalization and Endogenous Growth: A q-Theory Approach,"
NBER Working Papers
5549, National Bureau of Economic Research, Inc.
- Baldwin, Richard E. & Forslid, Rikard, 2000. "Trade liberalisation and endogenous growth: A q-theory approach," Journal of International Economics, Elsevier, vol. 50(2), pages 497-517, April.
- Baldwin, Richard & Forslid, Rikard, 1996. "Trade Liberalization and Endogenous Growth: A q-Theory Approach," CEPR Discussion Papers 1397, C.E.P.R. Discussion Papers.
- Castro, Vitor, 2011.
"The impact of the European Union fiscal rules on economic growth,"
Journal of Macroeconomics,
Elsevier, vol. 33(2), pages 313-326, June.
- Vítor Castro, 2007. "The Impact of the European Union Fiscal Rules on Economic Growth," NIPE Working Papers 10/2007, NIPE - Universidade do Minho.
- Castro, Vítor, 2007. "The Impact Of The European Union Fiscal Rules On Economic Growth," The Warwick Economics Research Paper Series (TWERPS) 794, University of Warwick, Department of Economics.
- Slawomir I. BUKOWSKI, 2006. "The Maastricht convergence criteria and economic growth in the EMU," Quaderni del Dipartimento di Economia, Finanza e Statistica 24/2006, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
- Andrea Bassanini & Stefano Scarpetta, 2001.
"The Driving Forces of Economic Growth: Panel Data Evidence for the OECD Countries,"
- Andrea Bassanini & Stefano Scarpetta, 2001. "The Driving Forces of Economic Growth: Panel Data Evidence for the OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 9-56.
- Soukiazis, Elias & Castro, Vitor, 2005. "How the Maastricht criteria and the Stability and Growth Pact affected real convergence in the European Union: A panel data analysis," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 385-399, April.
- M., Azali & Wong, K. S. Kelly & Lee, C. & Shafinaz, Ahmad Nazar, 2007. "The Asean-5 Future Currency: Maastricht Criteria," MPRA Paper 10272, University Library of Munich, Germany.
- Borut Vojinović & Mariusz Próchniak, 2009. "Divergence Period in the European Convergence Process," Transition Studies Review, Springer, vol. 15(4), pages 685-700, February.
- Haider, Adnan & Hameed, Shahzad & Wajid, Abdul, 2010. "Income Convergence Hypothesis: A Regional Comparison of selected East and South Asian Economies," MPRA Paper 23739, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keisuke Kawata).
If references are entirely missing, you can add them using this form.