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Did the European Unification Induce Economic Growth? In Search of Scale-Effects and Persistent Changes

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  • Vanhoudt, Patrick

    (The European Institute of Japanese Studies)

Abstract

In this paper we investigate whether the European unification has had an impact on the Union's average labor productivity growth. Based on a time series approach we do not find a scale-effect as suggested by new growth theory. However, the data do not reject the hypothesis that the EU growth experience is well described by a textbook Solow model. Panel data estimations moreover firmly reject the idea of a growth bonus associated with EU membership.

Suggested Citation

  • 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.
    • Handle: RePEc:hhs:hastef:0270
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    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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