Institutional Integration and Productivity Growth: Evidence from the 1995 Enlargement of the European Union

Nauro Campos, Fabrizio Coricelli and Emanuele Franceschi

No 14834, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies the productivity effects of integration deepening. The identification strategy exploits the 1995 European Union (EU) enlargement, when all candidate countries joined the Single Market but one — Norway — did not join the EU. Our synthetic difference-in-differences estimates on sectoral and regional data suggest had Norway chosen deeper integration, the average Norwegian region would have experienced an increase in yearly productivity growth of about 0.6 percentage points. This method also helps determining the sources of heterogeneity, apparently inherent to integration, highlighting higher costs of the missed deeper integration for more peripheral regions and industrial sector.

Keywords: institutional integration; economic integration; productivity growth; European Union; European Economic Area (search for similar items in EconPapers)
JEL-codes: C33 F15 F55 O43 O52 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2021-11
New Economics Papers: this item is included in nep-eec, nep-eff, nep-int and nep-lab
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Published - published in: European Economic Review, 2022, 142, 104014

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Journal Article: Institutional integration and productivity growth: Evidence from the 1995 enlargement of the European Union (2022)
Working Paper: Institutional Integration and Productivity Growth: Evidence from the 1995 Enlargement of the European Union (2021)
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