The dynamics of core and periphery in the European monetary union: a new approach

Nauro Campos and Corrado Macchiarelli

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Despite numerous studies about core-periphery in monetary unions, few focus on their dynamics. This paper (i) presents new theory-based, continuous and dynamic measures of the probability of a country being classified as core or periphery; (ii) estimates the determinants of the changes in this probability over time and across countries; and (iii) uses the Phillips-Sul convergence panel framework to investigate the behaviour of core and periphery groups over time. Our main results indicate that the post-EMU decrease of the core-periphery gap that we document was mainly driven by the adoption of the euro and by increasing competition (lower mark-ups).

Keywords: competition; convergence; core-periphery; Euro; symmetry (search for similar items in EconPapers)
JEL-codes: C50 E30 F40 N10 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2021-04-01
New Economics Papers: this item is included in nep-his, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Journal of International Money and Finance, 1, April, 2021, 112. ISSN: 0261-5606

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http://eprints.lse.ac.uk/113423/ Open access version. (application/pdf)

Related works:
Journal Article: The dynamics of core and periphery in the European monetary union: A new approach (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:113423

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