Is Europe disintegrating? Macroeconomic divergence, structural polarization, trade and fragility
Claudius Graebner (),
Philipp Heimberger (),
Jakob Kapeller () and
Additional contact information
Claudius Graebner: Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria, https://claudius-graebner.com/
Bernhard Schuetz: Department of Economics, Johannes Kepler University Linz
Authors registered in the RePEc Author Service: Bernhard Schütz and
Claudius Gräbner ()
No 64, ICAE Working Papers from Johannes Kepler University, Institute for Comprehensive Analysis of the Economy
This paper analyses economic developments in the Eurozone over the period 1999-2016 by developing a theoretical framework that traces divergent path developments across Eurozone countries to the times before the financial crisis. We argue that macroeconomic divergence between core and periphery countries is driven by 'structural polarization' in industrial structures: the emergence of export-driven growth in the core and debt-driven growth in the periphery is linked to the micro level of technological capabilities and firm performance. Pushing for convergence within Europe requires the simultaneous implementation of three intertwined policy programs: coordinated macroprudential financial regulation, active industrial policies aiming at a catching-up process in terms of innovative activity and technological capabilities for firms in the European periphery, and progressive re-distributional policies.
Keywords: Polarization; European Monetary Union; industrial policy; financial regulation; growth trajectories (search for similar items in EconPapers)
Pages: 33 pages
New Economics Papers: this item is included in nep-eec and nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
https://www.jku.at/fileadmin/gruppen/108/ICAE_Working_Papers/wp64.pdf First version, 2017 (application/pdf)
Working Paper: Is Europe disintegrating? Macroeconomic divergence, structural polarization, trade and fragility (2017)
Working Paper: Is Europe Disintegrating? Macroeconomic Divergence, Structural Polarisation, Trade and Fragility (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ico:wpaper:64
Access Statistics for this paper
More papers in ICAE Working Papers from Johannes Kepler University, Institute for Comprehensive Analysis of the Economy Contact information at EDIRC.
Bibliographic data for series maintained by Teresa Griesebner ().