Working Paper: CEPR ID: DP1465
Authors: Magnus Henrekson; Johan Torstensson; Rasha T. Orstensson
Abstract: This paper deals with the effects of European integration in the EC and EFTA on economic growth. Base regressions suggest that EC and EFTA memberships do in fact have a positive and significant effect on economic growth, and that there is no significant difference between EC and EFTA membership. This result is not completely robust with respect to changes in the set of control variables and to measurement errors. Nonetheless, the results suggest that regional integration may not only affect resource allocation, but also long-run growth rates. This conclusion is strengthened by the fact that we obtain similar results when we use panel data for a sample of OECD countries. In addition, we explore possible indirect effects of regional integration.
Keywords: economic growth; long-run growth; european integration; regional integration
JEL Codes: F15; F43
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| EC/EFTA membership (F15) | technology transfer (O33) |
| technology transfer (O33) | economic growth (O49) |
| EC/EFTA membership (F15) | investment levels (F21) |
| EC/EFTA membership (F15) | economic growth (O49) |