The Eurozone Convergence through Crises and Structural Changes

Merih Uctum, Remzi Uctum and Chu-Ping C. Vijverberg

No 2017-38, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: In light of several economic and financial crises and institutional changes experienced by the Eurozone countries, we examine whether the adoption of the euro led to business cycle synchronization or fostered convergence of growth rates. Controlling for reverse causality, we conduct multiple endogenous break tests and find that while output growth was synchronized for some countries, convergence occurred in a nonlinear way for others: (i) convergence was not triggered by adoption of the euro but by international or idiosyncratic shocks; (ii) in several countries convergence started long before the introduction of the euro, accelerated during the 1990s and continued since then, reflecting persistent influence of the core countries; (iii) convergence has been prevalent among the non-Eurozone economies in our sample.

Keywords: Convergence; business cycle synchronization; euro; crises; structural breaks. (search for similar items in EconPapers)
JEL-codes: E3 F4 F6 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2017
New Economics Papers: this item is included in nep-eec, nep-mac and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://economix.fr/pdf/dt/2017/WP_EcoX_2017-38.pdf (application/pdf)

Related works:
Working Paper: The Eurozone convergence through crises and structural changes (2017)
Working Paper: The Eurozone Convergence through Crises and Structural Changes (2017)
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:drm:wpaper:2017-38

Access Statistics for this paper

More papers in EconomiX Working Papers from University of Paris Nanterre, EconomiX Contact information at EDIRC.
Bibliographic data for series maintained by Valerie Mignon ( this e-mail address is bad, please contact ).