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The Economic Research Institute, Stockholm School of Economics SSE/EFI Working Paper Series in Economics and Finance

No 270:
Did the European Unification Induce Economic Growth? In Search of Scale-Effects and Persistent Changes

Patrick Vanhoudt

Abstract: In this paper we investigate whether the European unification has had an impact on the Union's average labor productivity growth. Based on a time series approach we do not find a scale-effect as suggested by new growth theory. However, the data do not reject the hypothesis that the EU growth experience is well described by a textbook Solow model. Panel data estimations moreover firmly reject the idea of a growth bonus associated with EU membership.

Keywords: Integration; economic growth; time series tests; panel data evidence; EU membership.; (follow links to similar papers)

JEL-Codes: E13; F02; O52; (follow links to similar papers)

29 pages, October 15, 1998

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