The EU Miracle: When 75 Million Reach High Income

Basile Grassi

No 19114, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In 2004, 75 million people across 10 countries joined the European Union (EU). In the subsequent 15 years, their GDP per capita doubled. Synthetic control methods show the new members’ GDP per capita was 32% higher in 2019 thanks to the EU adhesion. I do not find a significant effect on the pre-2004 members. These findings are robust to various tests. Growth was primarily driven by the Solow residual. Data show rapid convergence in the main aggregates and declining misallocation measures, whereas TFP has not fully converged. These results point toward a large positive impact of the EU.

Date: 2024-05
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://cepr.org/publications/DP19114 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:19114

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP19114

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().