IDEAS home Printed from https://ideas.repec.org/a/jes/journl/y2024v15p5-40.html

Assessing the benefits of European integration: a comparative and algorithmic approach

Author

Listed:
  • Sara CASAGRANDE

    (University of Trento, Italy)

  • Bruno DALLAGO

    (University of Trento, Italy)

Abstract

This article investigates the economic consequences of EU membership for the countries that established the EU in 1992. The Synthetic Control method is used in the frame of an algorithmic methodology that aims to guide the choice of donor pool countries and predictors by testing different combinations. The algorithm allows to judge the appropriateness of the research design by computing a set of synthetic countries able to improve the performance of the benchmark case (i.e., a synthetic country computed using an initial large basket of donor pool units and predictors). According to the results, the algorithm has been able to improve the counterfactual scenarios' precision and robustness for all tested countries. It shows that the economic effect of the EU membership has significantly varied among countries. Results suggest that the European integration process has not prevented persistent divergence and heterogeneity of growth paths among member countries.

Suggested Citation

  • Sara CASAGRANDE & Bruno DALLAGO, 2024. "Assessing the benefits of European integration: a comparative and algorithmic approach," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 15, pages 5-40, June.
    • Handle: RePEc:jes:journl:y:2024:v:15:p:5-40
    DOI: https://doi.org/10.47743/ejes-2024-0101
    as

    Download full text from publisher

    File URL: https://ejes.uaic.ro/articles/EJES2024_1501_CAS.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.47743/ejes-2024-0101?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruno Ferman & Cristine Pinto, 2021. "Synthetic controls with imperfect pretreatment fit," Quantitative Economics, Econometric Society, vol. 12(4), pages 1197-1221, November.
    2. Jeffrey Frankel & Andrew Rose, 2002. "An Estimate of the Effect of Common Currencies on Trade and Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 437-466.
    3. M. Hashem Pesaran & L. Vanessa Smith & Ron P. Smith, 2007. "What if the UK or Sweden had joined the euro in 1999? An empirical evaluation using a Global VAR," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 12(1), pages 55-87.
    4. Monfort, Mercedes & Cuestas, Juan Carlos & Ordóñez, Javier, 2013. "Real convergence in Europe: A cluster analysis," Economic Modelling, Elsevier, vol. 33(C), pages 689-694.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Puzzello, Laura & Gomis-Porqueras, Pedro, 2018. "Winners and losers from the €uro," European Economic Review, Elsevier, vol. 108(C), pages 129-152.
    2. Thomas COUDERT & Blandine ZIMMER, 2023. "Giving up the euro can be a good and a bad idea," Working Papers of LaRGE Research Center 2023-01, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    3. Kapounek, Svatopluk & Kučerová, Zuzana, 2019. "Historical decoupling in the EU: Evidence from time-frequency analysis," International Review of Economics & Finance, Elsevier, vol. 60(C), pages 265-280.
    4. Petrović, Marko & Ozel, Bulent & Teglio, Andrea & Raberto, Marco & Cincotti, Silvano, 2020. "Should I stay or should I go? An agent-based setup for a trading and monetary union," Journal of Economic Dynamics and Control, Elsevier, vol. 113(C).
    5. Ms. Giorgia Albertin, 2008. "Trade Effects of Currency Unions: Do Economic Dissimilarities Matter?," IMF Working Papers 2008/249, International Monetary Fund.
    6. repec:ebl:ecbull:v:6:y:2004:i:4:p:1-8 is not listed on IDEAS
    7. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    8. Asongu, Simplice A. & Odhiambo, Nicholas M., 2021. "Inequality, finance and renewable energy consumption in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 165(P1), pages 678-688.
    9. Amita Batra, 2006. "India's Global Trade Potential: The Gravity Model Approach," Global Economic Review, Taylor & Francis Journals, vol. 35(3), pages 327-361.
    10. Fetzer, James J. & Rivera, Sandra A., 2005. "Modeling Modifications in Rules of Origin: A Partial Equilibrium Approach," Conference papers 331372, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Çakır, Mustafa Yavuz & Kabundi, Alain, 2013. "Trade shocks from BRIC to South Africa: A global VAR analysis," Economic Modelling, Elsevier, vol. 32(C), pages 190-202.
    12. Jinjarak, Yothin, 2014. "Equity prices and financial globalization," International Review of Financial Analysis, Elsevier, vol. 33(C), pages 49-57.
    13. Herbert Buscher & Hubert Gabrisch, 2012. "The synchronization of wage dynamics across EMU members. A test of the endogeneity hypothesis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(3), pages 327-340, August.
    14. Alvar Kangur, 2016. "What Rules in the ‘Deep’ Determinants of Comparative Development?," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 8(1).
    15. Ling Xiong & Shaozhou Qi, 2018. "Financial Development And Carbon Emissions In Chinese Provinces: A Spatial Panel Data Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(02), pages 447-464, March.
    16. Dennis Shen & Peng Ding & Jasjeet Sekhon & Bin Yu, 2022. "Same Root Different Leaves: Time Series and Cross-Sectional Methods in Panel Data," Papers 2207.14481, arXiv.org, revised Oct 2022.
    17. Carmen Díaz-Roldán & María del Carmen Ramos-Herrera, 2021. "Innovations and ICT: Do They Favour Economic Growth and Environmental Quality?," Energies, MDPI, vol. 14(5), pages 1-17, March.
    18. Bergin, Paul R. & Lin, Ching-Yi, 2012. "The dynamic effects of a currency union on trade," Journal of International Economics, Elsevier, vol. 87(2), pages 191-204.
    19. repec:spo:wpmain:info:hdl:2441/941 is not listed on IDEAS
    20. Gaies, Brahim & Goutte, Stéphane & Guesmi, Khaled, 2019. "Banking crises in developing countries–What crucial role of exchange rate stability and external liabilities?," Finance Research Letters, Elsevier, vol. 31(C).
    21. J. James Reade & Ulrich Volz, 2009. "Too Much to Lose, or More to Gain? Should Sweden Join the Euro?," Economics Series Working Papers 442, University of Oxford, Department of Economics.
    22. Feldkircher, Martin, 2015. "A global macro model for emerging Europe," Journal of Comparative Economics, Elsevier, vol. 43(3), pages 706-726.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jes:journl:y:2024:v:15:p:5-40. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alupului Ciprian (email available below). General contact details of provider: https://edirc.repec.org/data/csjesro.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.