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Institutional Integration and Economic Growth in Europe

Author

Listed:
  • Nauro Campos

    (Brunel University London [Uxbridge], D-HEST - Department of Health Sciences and Technology [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich])

  • Fabrizio Coricelli

    (CEPR - Center for Economic Policy Research - CEPR, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Luigi Moretti

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

The literature on the growth effects of European integration remains inconclusive. This is due to severe methodological difficulties mostly driven by country heterogeneity. This paper addresses these concerns using the synthetic control method. It constructs counterfactuals for countries that joined the European Union (EU) from 1973 to 2004. We find that growth effects from EU membership are large and positive, with Greece as the exception. Despite substantial variation across countries and over time, we estimate that without European integration, per capita incomes would have been, on average, approximately 10% lower in the first ten years after joining the EU.

Suggested Citation

  • Nauro Campos & Fabrizio Coricelli & Luigi Moretti, 2019. "Institutional Integration and Economic Growth in Europe," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01881789, HAL.
  • Handle: RePEc:hal:cesptp:hal-01881789
    DOI: 10.1016/j.jmoneco.2018.08.001
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01881789
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    More about this item

    Keywords

    Economic growth; Integration; Synthetic control method; European union; Institutions;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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