New empirical insights into the growth effects of economic integration within EU
AbstractThis 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.
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Bibliographic InfoPaper provided by EconWPA in its series International Trade with number 0505014.
Length: 33 pages
Date of creation: 24 May 2005
Date of revision:
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.
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economic growth; European economic integration; dynamic panel data models; system GMM estimator;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-03 (All new papers)
- NEP-EEC-2006-06-03 (European Economics)
- NEP-TRA-2006-06-03 (Transition Economics)
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