Advanced Search
MyIDEAS: Login

New empirical insights into the growth effects of economic integration within EU

Contents:

Author Info

  • Tomasz Brodzicki

    (University of Gdansk)

Abstract

This paper investigates the existence of medium and long-run growth effects of economic integration within the European Union. We apply the system GMM methodology to estimate a number of dynamic panel data models. The study is undertaken for a panel sample consisting of 27 advanced economies and covering eight time periods between 1960 and 1999. We propose a number of new economic integration variables which presumably better reflect the complex nature of the economic integration process within the EU characterized by gradual widening and deepening. Our results point to an existence of a positive long-term relationship between economic integration and growth rates of real GDP per capita. At the same time we identify a negative medium-run effect on growth of accession into the EU. Both deepening and widening of the economic integration are found to be beneficial to long-term growth performance of Member States. The benefits associated with accession and membership in the EU are found to be asymmetrical.

Download Info

If 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.
File URL: http://128.118.178.162/eps/it/papers/0505/0505014.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series International Trade with number 0505014.

as in new window
Length: 33 pages
Date of creation: 24 May 2005
Date of revision:
Handle: RePEc:wpa:wuwpit:0505014

Note: Type of Document - pdf; pages: 33. Paper presented at the Fourth Annual Conference of the European Economic and Finance Society “Economic and Financial Issues in an Enlarged Europe” Coimbra, 19-22 May 2005. I would like to thank Maria Blangiewicz, Dorota Cio³ek and Anna Zieliñska-G³êbocka of the University of Gdansk as well as the following participants of the 4th Annual Conference of the European Economics and Finance Society at the University of Coimbra: George Agiomirgianakis, Diego Romero de Avila, Constantina Kottaridi, Reiner Martin, Usha Nair- Reichert and Elias Soukiazis for their helpful comments and suggestions.
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords: economic growth; European economic integration; dynamic panel data models; system GMM estimator;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Henrekson, Magnus & Torstensson, Johan & Torstensson, Rasha, 1995. "Growth Effects of European Integration," Working Paper Series 439, Research Institute of Industrial Economics.
  2. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
  3. Cieslik, Andrzej & Ryan, Michael, 2004. "Explaining Japanese direct investment flows into an enlarged Europe: A comparison of gravity and economic potential approaches," Journal of the Japanese and International Economies, Elsevier, vol. 18(1), pages 12-37, March.
  4. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September.
  5. Michael B. Devereux & Beverly J. Lapham, 1993. "The Stability of Economics Integration and Endogenous Growth," Working Papers 878, Queen's University, Department of Economics.
  6. Michael D. Bordo, 2003. "Exchange Rate Regime Choice in Historical Perspective," IMF Working Papers 03/160, International Monetary Fund.
  7. Jean Pisani-Ferry & Alexander Italianer, 1994. "Whither the Gains from European Economic Integration ?," Revue Économique, Programme National Persée, vol. 45(3), pages 689-702.
  8. Athanasios Vamvakidis, 1999. "Regional Trade Agreements or Broad Liberalization: Which Path Leads to Faster Growth?," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 3.
  9. María Garcia-Vega & José A. Herce, 2002. "Interdependent Growth in the EU: The Role of Trade," Economics Working Papers 011, European Network of Economic Policy Research Institutes.
  10. Baldwin, Richard, 1990. "Measurable Dynamic Gains from Trade," Working Paper Series 270, Research Institute of Industrial Economics.
  11. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  12. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-63, July.
  13. Haveman, Jon D & Lei, Vivian & Netz, Janet S, 2001. "International Integration and Growth: A Survey and Empirical Investigation," Review of Development Economics, Wiley Blackwell, vol. 5(2), pages 289-311, June.
  14. Baldwin, Richard & Forslid, Rikard, 1997. "The Core-Periphery Model and Endogenous Growth," CEPR Discussion Papers 1749, C.E.P.R. Discussion Papers.
  15. Patrick Vanhoudt, 1999. "Did the European unification induce economic growth? In search of scale effects and persistent changes," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(2), pages 193-220, June.
  16. Uwe Walz, 1997. "Dynamic Effects of Economic Integration: A Survey," Open Economies Review, Springer, vol. 8(3), pages 309-326, July.
  17. Rivera-Batiz, Luis & Romer, Paul M, 1994. "Economic Integration and Endogenous Growth: An Addendum," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 307-08, February.
  18. Willenbockel, D., 1998. "Recent Developments in the Predictive Assessment of Dynamic Integration Effects: A Critical Appraisal," Papers 45, Middlesex University - School of Economics.
  19. Mazumdar, Joy, 1996. "Do Static Gains from Trade Lead to Medium-Run Growth?," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1328-37, December.
  20. Krugman, Paul & Venables, Anthony J., 1996. "Integration, specialization, and adjustment," European Economic Review, Elsevier, vol. 40(3-5), pages 959-967, April.
  21. Willenbockel, Dirk, 1998. "Growth effects of anticipated trade liberalization and the Baldwin multiplier," Economics Letters, Elsevier, vol. 59(2), pages 231-235, May.
  22. Lucas Bretschger & Thomas M. Steger, 2004. "The dynamics of economic integration: Theory and policy," International Economics and Economic Policy, Springer, vol. 1(2), pages 119-134, January.
  23. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
  24. Walz, Uwe, 1997. "Growth and Deeper Regional Integration in a Three-County Model," Review of International Economics, Wiley Blackwell, vol. 5(4), pages 492-507, November.
  25. Temple, Jonathan, 2000. "Growth Regressions and What the Textbooks Don't Tell You," Bulletin of Economic Research, Wiley Blackwell, vol. 52(3), pages 181-205, July.
  26. Walz, Uwe, 1998. "Does an enlargement of a common market stimulate growth and convergence?," Journal of International Economics, Elsevier, vol. 45(2), pages 297-321, August.
  27. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  28. Baldwin, Richard E & Forslid, Rikard, 2000. "The Core-Periphery Model and Endogenous Growth: Stabilizing and Destabilizing Integration," Economica, London School of Economics and Political Science, vol. 67(267), pages 307-24, August.
  29. Luis A. Rivera-Batiz & Paul M. Romer, 1990. "Economic Integration and Endogenous Growth," NBER Working Papers 3528, National Bureau of Economic Research, Inc.
  30. Harald Badinger, 2005. "Growth Effects of Economic Integration: Evidence from the EU Member States," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(1), pages 50-78, April.
  31. Haveman, J.D. & Lei, V. & Netz, J.S., 1998. "International Integration and Growth: a Survey and Empirical Investigation," Papers 98-003, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Artelaris, Panagiotis & Arvanitidis, Paschalis & Petrakos, George, 2006. "Theoretical and Methodological Study on Dynamic Growth Regions and Factors Explaining their Growth Performance," Papers DYNREG02, Economic and Social Research Institute (ESRI).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpit:0505014. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.