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Norwegian Rhapsody? The Political Economy Benefits of Regional Integration

Author

Listed:
  • Nauro Campos

    (CEPR - Center for Economic Policy Research - CEPR, Brunel University [Uxbridge])

  • Fabrizio Coricelli

    () (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Luigi, Moretti,

    ()

Abstract

This paper investigates whether joint economic and political integration leads to larger economic benefits than just economic integration. The identification strategy rests on the fact that Norway, at the time of the 1995 Enlargement of the European Union (EU), had successfully completed negotiations and fulfilled all accession requirements, taken membership in the European Economic Area (with full access to the Single Market), but decided in a referendum to reject full-fledged EU membership. Using the differences-in-differences and synthetic control methods with regional data, we find substantial politically driven economic benefits from EU membership: if Norway had joined the EU in 1995, productivity levels between 1995 and 2001 would have been 6% higher on average.

Suggested Citation

  • Nauro Campos & Fabrizio Coricelli & Luigi, Moretti,, 2015. "Norwegian Rhapsody? The Political Economy Benefits of Regional Integration," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01267252, HAL.
  • Handle: RePEc:hal:cesptp:halshs-01267252
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01267252
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    References listed on IDEAS

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    Cited by:

    1. Marin Opritescu & Mircea Perpelea, 2016. "Europe after BREXIT: Shades and Penumbra," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(18), pages 21-23, November.
    2. repec:oup:ecpoli:v:32:y:2017:i:92:p:651-705. is not listed on IDEAS
    3. Swati Dhingra & Hanwei Huang & Gianmarco Ottaviano & João Paulo Pessoa & Thomas Sampson & John Van Reenen, 2017. "The costs and benefits of leaving the EU: trade effects," Economic Policy, CEPR;CES;MSH, vol. 32(92), pages 651-705.
    4. Randolph Bruno & Nauro Campos & Saul Estrin & Meng Tian, 2017. "Economic Integration, Foreign Investment and International Trade: The Effects of Membership of the European Union," CEP Discussion Papers dp1518, Centre for Economic Performance, LSE.
    5. repec:bin:bpeajo:v:47:y:2016:i:2016-02:p:367-383 is not listed on IDEAS
    6. Jan Fidrmuc & Martin Hulényi & Cigdem Börke Tunali, 2016. "Money Can't Buy EU Love: European Funds and the Brexit Referendum," CESifo Working Paper Series 6107, CESifo Group Munich.
    7. repec:eee:poleco:v:55:y:2018:i:c:p:324-345 is not listed on IDEAS

    More about this item

    Keywords

    Political and economic integration; European Union;

    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
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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