The European growth synchronization through crises and structural changes

Merih Uctum, Remzi Uctum and Vijverberg Chu-Ping C.
Additional contact information
Vijverberg Chu-Ping C.: College of Staten Island and the Graduate Center, City University of New York, Staten Island, NY, USA

Studies in Nonlinear Dynamics & Econometrics, 2021, vol. 25, issue 1, 17

Abstract: In light of several economic and financial crises and institutional changes experienced by the European countries, we examine whether these economies achieved synchronization of their business cycles and fostered synchronization of their growth rates. Controlling for reverse causality, we conduct multiple endogenous break tests and find that (i) several endogenous break dates correspond to idiosyncratic shocks affecting individual countries or major shocks in international arena but not the adoption of the euro; this result suggests that the convergence process has been nonlinear for a number of countries and that studies imposing break dates exogenously, such as the launch of euro, may lead to biased conclusions; (ii) while output growth was increasingly synchronized for some countries, integration occurred in an asymmetric way and it did not change or did not occur for others despite being in the same common currency area (iii) convergence has been prevalent among the non-Eurozone economies in our sample.

Keywords: convergence; crises; euro; growth synchronization; structural breaks (search for similar items in EconPapers)
JEL-codes: E3 F4 F6 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/snde-2018-0097 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: The European growth synchronization through crises and structural changes (2021)
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:bpj:sndecm:v:25:y:2021:i:1:p:17:n:6

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/snde/html

DOI: 10.1515/snde-2018-0097

Access Statistics for this article

Studies in Nonlinear Dynamics & Econometrics is currently edited by Bruce Mizrach

More articles in Studies in Nonlinear Dynamics & Econometrics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().