Structural change in times of increasing openness: assessing path dependency in European economic integration

Philipp Heimberger, Claudius Gräbner-Radkowitsch, Jakob Kapeller and Bernhard Schütz

No 2018-06, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: This paper analyzes the dynamics of structural polarizatio and macroeconomic convergence vs. divergence in the context of European integration, where the latter is understood primarily as an increase in economic and financial openness. In the process of estimating the dynamic e?ects of openness shocks on 26 EU countries, we develop a taxonomy of European economies that consists of core, periphery, financialized and Eastern European catch-up economies. As these four country groups have responded in a distinct way to the openness shocks imposed by European integration, we argue that the latter should be seen as an evolutionary process that has given rise to different path-dependent developmental trajectories. These trajectories relate to the sectoral development of European economies and the evolution of their technological capabilities. We propose a set of interrelated policy measures to counteract structural polarization and to promote macroeconomic convergence in Europe.

Pages: 45 pages
Date: 2018-05
Note: English
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.econ.jku.at/papers/2018/wp1806.pdf (application/pdf)

Related works:
Journal Article: Structural change in times of increasing openness: assessing path dependency in European economic integration (2020)
Working Paper: Structural change in times of increasing openness: Assessing path dependency in European economic integration (2019)
Working Paper: Structural change in times of increasing openness: assessing path dependency in European economic integration (2018)
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:jku:econwp:2018_06

Access Statistics for this paper

More papers in Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria Contact information at EDIRC.
Bibliographic data for series maintained by René Böheim (rene.boeheim@jku.at).