Social Conflict and Growth in Euroland

Paul De Grauwe and Frauke Skudelny ()

Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: This paper aims at contributing to the literature on the differences in the transmission processes within Euroland. We start from the proposition that there are ‘deep’ differences in the nature of social conflicts and in the way countries deal with these conflicts. We empirically test this effect for the EU-growth and introduce several proxies for social conflicts and conflict management. We then analyse (in addition to common growth variables) an EU wide shock and find that differences in the social conflict and the conflict management institutions contribute to different effects on economic growth. We conclude by presenting a model giving a theoretical foundation of the empirical results.

Date: 1999-03
New Economics Papers: this item is included in nep-soc
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Working Paper: Social Conflict and Growth in Euroland (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:ceswps:ces9913

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