Working Paper: CEPR ID: DP1242
Authors: Alexis Jacquemin; Andre Sapir
Abstract: The paper analyses the proposal to create a hard core of EU countries committed to deeper and faster integration by studying the economic structure of the proposed grouping. It is divided into two parts. The first examines the relative weight and structural characteristics of the five potential candidates for early membership of the hard core in comparison with the whole EU, Japan and the United States. The second uses principal component and cluster analyses to investigate whether these five countries represent a homogenous grouping vis-à-vis the other EU members.
Keywords: regional integration; EU
JEL Codes: F13; F15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| EU5 (F36) | considerable economic space (R12) |
| EU5 (F36) | fairly homogenous group of countries (F36) |
| north-south divide (R12) | instability of Italy's position (F55) |
| structural factors (L10) | inclusion of Denmark and the UK in northern grouping (F55) |