Market potential, European Union and growth
The successive enlargements of the European Union have implied an important increase of the market where European firms can supply their products. In this paper we analyze the influence of this process on the economic growth of EU members by including the market potential as a scale indicator in a Solow-type model. The main results are: first, the integration in the EU, specially for new members, explain a substantial fraction of subsequent growth (between 15% and 40%); second, this effect diminishes over time; third, the GDP of new members appears to have a greater positive influence than its population; and fourth, peripheral countries and those less open to trade are in a worse position to appropriate such benefits.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
- Marius BRÜLHART & Federico TRIONFETTI, 2001.
"A Test of Trade Theories when Expenditure is Home Biased,"
Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP)
01.11, Université de Lausanne, Faculté des HEC, DEEP.
- Brülhart, Marius & Trionfetti, Federico, 2009. "A test of trade theories when expenditure is home biased," European Economic Review, Elsevier, vol. 53(7), pages 830-845, October.
- Marius Brülhart & Federico Trionfetti, 2009. "A test of trade theories when expenditure is home biased," Working Papers halshs-00366530, HAL.
- Brülhart, Marius & Trionfetti, Federico, 2005. "A Test of Trade Theories when Expenditure is Home Biased," CEPR Discussion Papers 5097, C.E.P.R. Discussion Papers.
- Francisco Alcalá & Antonio Ciccone, 2004.
"Trade and Productivity,"
The Quarterly Journal of Economics,
MIT Press, vol. 119(2), pages 612-645, May.
- Francisco Alcalá & Antonio Ciccone, 2003. "Trade and Productivity," Working Papers 12, Barcelona Graduate School of Economics.
- Alcala, Francisco & Ciccone, Antonio, 2001. "Trade and Productivity," CEPR Discussion Papers 3095, C.E.P.R. Discussion Papers.
- Francisco Alcalá & Antonio Ciccone, 2001. "Trade and productivity," Economics Working Papers 580, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2002.
- Jesus Crespo Cuaresma & Maria Antoinette Dimitz & Doris Ritzberger-Grünwald, 2002.
"Growth, Convergence and EU Membership,"
62, Oesterreichische Nationalbank (Austrian Central Bank).
- Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
- Spolaore, Enrico & Wacziarg, Romain, 2002.
"Borders and Growth,"
1761, Stanford University, Graduate School of Business.
- Henrekson, Magnus & Torstensson, Johan & Torstensson, Rasha, 1995.
"Growth Effects of European Integration,"
Working Paper Series
439, Research Institute of Industrial Economics.
- Henrekson, Magnus & Torstensson, Rasha, 1996. "Growth Effects of European Integration," CEPR Discussion Papers 1465, C.E.P.R. Discussion Papers.
- Magnus Henrekson & Johan Torstensson & Rasha Torstensson,, . "Growth Effects of European Integration," Discussion Papers 96/1, University of Nottingham, CREDIT.
- Richard Nahuis, 2002.
"One size fits all? Accession to the internal market; an industry level assessment of EU enlargement,"
CPB Discussion Paper
14, CPB Netherlands Bureau for Economic Policy Analysis.
- Nahuis, Richard, 2004. "One size fits all?: Accession to the internal market; an industry-level assessment of EU enlargement," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 571-586, July.
- Robert J. Barro, 1995.
"Inflation and Economic Growth,"
NBER Working Papers
5326, National Bureau of Economic Research, Inc.
- Alberto Alesina & Enrico Spolaore & Romain Wacziarg, 1997.
"Economic Integration and Political Disintegration,"
NBER Working Papers
6163, National Bureau of Economic Research, Inc.
- Keith Head & Thierry Mayer, 2004.
"Non-Europe : the magnitude and causes of market fragmentation in the EU,"
Cahiers de la Maison des Sciences Economiques
bla99004a, Université Panthéon-Sorbonne (Paris 1).
- Keith Head & Thierry Mayer, 2000. "Non-Europe: The magnitude and causes of market fragmentation in the EU," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(2), pages 284-314, June.
- Vanhoudt, Patrick, 1998.
"Did the European Unification Induce Economic Growth? In Search of Scale-Effects and Persistent Changes,"
SSE/EFI Working Paper Series in Economics and Finance
270, Stockholm School of Economics.
- 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.
- Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
- de Bruijn, Roland & Kox, Henk & Lejour, Arjan, 2008. "Economic benefits of an Integrated European Market for Services," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 301-319.
- Alwyn Young, 1998. "Growth without Scale Effects," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 41-63, February.
- Jeffrey Sachs & Andrew Warner, 1995.
"Economic Reform and the Progress of Global Integration,"
Harvard Institute of Economic Research Working Papers
1733, Harvard - Institute of Economic Research.
- Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:31:y:2009:i:5:p:719-730. 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: (Zhang, Lei)
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.