Growth effects of EU and EZ memberships

Empirical findings from the first 15 years of the Euro

Johannes Kabderian Dreyer, Peter A. Schmid

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

One of the major economic reasons for the creation of the European Union (EU) and of the Euro-zone (EZ) was an expected bonus of economic growth for member countries. Whilst several studies exist on the growth bonus of EU membership, there are none for the EZ, the latest and deepest step of economic integration in Europe. The aim of this article is to investigate whether EU and EZ memberships enhance growth for their members. In order to perform our empirical analysis, we estimate different growth models restricting the time frame to the first 15 years of the Euro - from 1999 to 2013. We find a positive impact of EU membership on economic growth, but no impact of being part of the EZ, except during the financial crisis, when the EZ has a negative impact on growth amongst its members. Considering the heated political debate related to the Brexit referendum, our results favour a “yes” to the EU but a less clear answer when it comes to the EZ.
OriginalsprogEngelsk
TidsskriftEconomic Modelling
Vol/bind67
Sider (fra-til)45-54
ISSN0264-9993
DOI
StatusUdgivet - 2017

Citer dette

@article{585bdc381deb4044aee41d0f41309586,
title = "Growth effects of EU and EZ memberships: Empirical findings from the first 15 years of the Euro",
abstract = "One of the major economic reasons for the creation of the European Union (EU) and of the Euro-zone (EZ) was an expected bonus of economic growth for member countries. Whilst several studies exist on the growth bonus of EU membership, there are none for the EZ, the latest and deepest step of economic integration in Europe. The aim of this article is to investigate whether EU and EZ memberships enhance growth for their members. In order to perform our empirical analysis, we estimate different growth models restricting the time frame to the first 15 years of the Euro - from 1999 to 2013. We find a positive impact of EU membership on economic growth, but no impact of being part of the EZ, except during the financial crisis, when the EZ has a negative impact on growth amongst its members. Considering the heated political debate related to the Brexit referendum, our results favour a “yes” to the EU but a less clear answer when it comes to the EZ.",
keywords = "Economic integration, Brexit, Growth bonus, Endogenous growth theory, Neoclassical growth model, EU and EZ memberships",
author = "Dreyer, {Johannes Kabderian} and Schmid, {Peter A.}",
year = "2017",
doi = "10.1016/j.econmod.2016.09.007",
language = "English",
volume = "67",
pages = "45--54",
journal = "Economic Modelling",
issn = "0264-9993",
publisher = "Elsevier BV",

}

Growth effects of EU and EZ memberships : Empirical findings from the first 15 years of the Euro. / Dreyer, Johannes Kabderian; Schmid, Peter A.

I: Economic Modelling, Bind 67, 2017, s. 45-54.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - Growth effects of EU and EZ memberships

T2 - Empirical findings from the first 15 years of the Euro

AU - Dreyer, Johannes Kabderian

AU - Schmid, Peter A.

PY - 2017

Y1 - 2017

N2 - One of the major economic reasons for the creation of the European Union (EU) and of the Euro-zone (EZ) was an expected bonus of economic growth for member countries. Whilst several studies exist on the growth bonus of EU membership, there are none for the EZ, the latest and deepest step of economic integration in Europe. The aim of this article is to investigate whether EU and EZ memberships enhance growth for their members. In order to perform our empirical analysis, we estimate different growth models restricting the time frame to the first 15 years of the Euro - from 1999 to 2013. We find a positive impact of EU membership on economic growth, but no impact of being part of the EZ, except during the financial crisis, when the EZ has a negative impact on growth amongst its members. Considering the heated political debate related to the Brexit referendum, our results favour a “yes” to the EU but a less clear answer when it comes to the EZ.

AB - One of the major economic reasons for the creation of the European Union (EU) and of the Euro-zone (EZ) was an expected bonus of economic growth for member countries. Whilst several studies exist on the growth bonus of EU membership, there are none for the EZ, the latest and deepest step of economic integration in Europe. The aim of this article is to investigate whether EU and EZ memberships enhance growth for their members. In order to perform our empirical analysis, we estimate different growth models restricting the time frame to the first 15 years of the Euro - from 1999 to 2013. We find a positive impact of EU membership on economic growth, but no impact of being part of the EZ, except during the financial crisis, when the EZ has a negative impact on growth amongst its members. Considering the heated political debate related to the Brexit referendum, our results favour a “yes” to the EU but a less clear answer when it comes to the EZ.

KW - Economic integration

KW - Brexit

KW - Growth bonus

KW - Endogenous growth theory

KW - Neoclassical growth model

KW - EU and EZ memberships

U2 - 10.1016/j.econmod.2016.09.007

DO - 10.1016/j.econmod.2016.09.007

M3 - Journal article

VL - 67

SP - 45

EP - 54

JO - Economic Modelling

JF - Economic Modelling

SN - 0264-9993

ER -