Different Models for Regional Integration: Lessons from Total Factor Productivity in Europe
AbstractThe European experience offers three possible models for regional integration: a free trade arrangement, a single market, and a common currency area. This paper examines the effect of regional integration on total factor productivity to assess the long-run growth implications of each model. The findings suggest that joining a regional grouping changes the way participating economies grow. Of the three models, the free trade arrangement is found to be the most effective in promoting intra-regional dependence on R&D spillovers. The other two models are associated with largely negative windfall effects on total factor productivity.
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Bibliographic InfoPaper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 452.
Length: 30 pages
Date of creation: 16 Dec 2013
Date of revision:
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More information through EDIRC
regional integration; economic growth; total factor productivity;
Find related papers by JEL classification:
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-29 (All new papers)
- NEP-EFF-2013-12-29 (Efficiency & Productivity)
- NEP-URE-2013-12-29 (Urban & Real Estate Economics)
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