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

Tomasz Brodzicki

International Trade from University Library of Munich, Germany

Abstract: 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.

Keywords: economic growth; European economic integration; dynamic panel data models; system GMM estimator (search for similar items in EconPapers)
JEL-codes: C23 F15 O53 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2005-05-24
New Economics Papers: this item is included in nep-eec and nep-tra
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.
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpit:0505014

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