IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

New empirical insights into the growth effects of economic integration within EU

  • Tomasz Brodzicki

    (University of Gdansk)

This paper investigates the existence of medium and long-run growth effects of economic integration within the European Union. We apply the system GMM methodology to estimate a number of dynamic panel data models. The study is undertaken for a panel sample consisting of 27 advanced economies and covering eight time periods between 1960 and 1999. We propose a number of new economic integration variables which presumably better reflect the complex nature of the economic integration process within the EU characterized by gradual widening and deepening. Our results point to an existence of a positive long-term relationship between economic integration and growth rates of real GDP per capita. At the same time we identify a negative medium-run effect on growth of accession into the EU. Both deepening and widening of the economic integration are found to be beneficial to long-term growth performance of Member States. The benefits associated with accession and membership in the EU are found to be asymmetrical.

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.

File URL: http://econwpa.repec.org/eps/it/papers/0505/0505014.pdf
Download Restriction: no

Paper provided by EconWPA in its series International Trade with number 0505014.

as
in new window

Length: 33 pages
Date of creation: 24 May 2005
Date of revision:
Handle: RePEc:wpa:wuwpit:0505014
Note: Type of Document - pdf; pages: 33. Paper presented at the Fourth Annual Conference of the European Economic and Finance Society “Economic and Financial Issues in an Enlarged Europe” Coimbra, 19-22 May 2005. I would like to thank Maria Blangiewicz, Dorota Cio³ek and Anna Zieliñska-G³êbocka of the University of Gdansk as well as the following participants of the 4th Annual Conference of the European Economics and Finance Society at the University of Coimbra: George Agiomirgianakis, Diego Romero de Avila, Constantina Kottaridi, Reiner Martin, Usha Nair- Reichert and Elias Soukiazis for their helpful comments and suggestions.
Contact details of provider: Web page: http://econwpa.repec.org

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.:

as in new window
  1. Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September.
  2. María Garcia-Vega & José A. Herce, 2002. "Interdependent Growth in the EU: The Role of Trade," Economics Working Papers 011, European Network of Economic Policy Research Institutes.
  3. Cieslik, Andrzej & Ryan, Michael, 2004. "Explaining Japanese direct investment flows into an enlarged Europe: A comparison of gravity and economic potential approaches," Journal of the Japanese and International Economies, Elsevier, vol. 18(1), pages 12-37, March.
  4. Devereux, Michael B & Lapham, Beverly J, 1994. "The Stability of Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 299-305, February.
  5. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
  6. Temple, Jonathan, 2000. "Growth Regressions and What the Textbooks Don't Tell You," Bulletin of Economic Research, Wiley Blackwell, vol. 52(3), pages 181-205, July.
  7. Magnus Henrekson & Johan Torstensson & Rasha Torstensson,, . "Growth Effects of European Integration," Discussion Papers 96/1, University of Nottingham, CREDIT.
  8. Jean Pisani-Ferry & Alexander Italianer, 1994. "Whither the Gains from European Economic Integration ?," Revue Économique, Programme National Persée, vol. 45(3), pages 689-702.
  9. Baldwin, Richard, 1990. "Measurable Dynamic Gains from Trade," Working Paper Series 270, Research Institute of Industrial Economics.
  10. Baldwin, Richard & Forslid, Rikard, 1997. "The Core-Periphery Model and Endogenous Growth," CEPR Discussion Papers 1749, C.E.P.R. Discussion Papers.
  11. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  12. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
  13. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May.
  14. Walz, Uwe, 1997. "Growth and Deeper Regional Integration in a Three-County Model," Review of International Economics, Wiley Blackwell, vol. 5(4), pages 492-507, November.
  15. Athanasios Vamvakidis, 1999. "Regional Trade Agreements or Broad Liberalization: Which Path Leads to Faster Growth?," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 3.
  16. Lucas Bretschger & Thomas M. Steger, 2004. "The dynamics of economic integration : theory and policy," CER-ETH Economics working paper series 04/32, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  17. M Arellano & O Bover, 1990. "Another Look at the Instrumental Variable Estimation of Error-Components Models," CEP Discussion Papers dp0007, Centre for Economic Performance, LSE.
  18. Michael D. Bordo, 2003. "Exchange Rate Regime Choice in Historical Perspective," IMF Working Papers 03/160, International Monetary Fund.
  19. Harald Badinger, 2005. "Growth Effects of Economic Integration: Evidence from the EU Member States," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(1), pages 50-78, April.
  20. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  21. Willenbockel, Dirk, 1998. "Growth effects of anticipated trade liberalization and the Baldwin multiplier," Economics Letters, Elsevier, vol. 59(2), pages 231-235, May.
  22. 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.
  23. repec:fda:fdaddt:2002-08 is not listed on IDEAS
  24. Krugman, Paul & Venables, Anthony J, 1993. "Integration, Specialization and Adjustment," CEPR Discussion Papers 886, C.E.P.R. Discussion Papers.
  25. Baldwin, Richard E & Forslid, Rikard, 2000. "The Core-Periphery Model and Endogenous Growth: Stabilizing and Destabilizing Integration," Economica, London School of Economics and Political Science, vol. 67(267), pages 307-24, August.
  26. Haveman, J.D. & Lei, V. & Netz, J.S., 1998. "International Integration and Growth: a Survey and Empirical Investigation," Papers 98-003, Purdue University, Krannert School of Management - Center for International Business Education and Research (CIBER).
  27. Walz, Uwe, 1998. "Does an enlargement of a common market stimulate growth and convergence?," Journal of International Economics, Elsevier, vol. 45(2), pages 297-321, August.
  28. Mazumdar, Joy, 1996. "Do Static Gains from Trade Lead to Medium-Run Growth?," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1328-37, December.
  29. Rivera-Batiz, Luis & Romer, Paul M, 1994. "Economic Integration and Endogenous Growth: An Addendum," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 307-08, February.
  30. Haveman, Jon D & Lei, Vivian & Netz, Janet S, 2001. "International Integration and Growth: A Survey and Empirical Investigation," Review of Development Economics, Wiley Blackwell, vol. 5(2), pages 289-311, June.
  31. Uwe Walz, 1997. "Dynamic Effects of Economic Integration: A Survey," Open Economies Review, Springer, vol. 8(3), pages 309-326, July.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpit:0505014. 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: (EconWPA)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.