Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121136
Authors: 
Mann, Katja
Year of Publication: 
2015
Series/Report no.: 
FIW Working Paper 136
Abstract: 
This paper investigates how the European integration process of central eastern European countries, which has been taking place since the 1990's, affects their GDP growth. Based on an augmented Solow model, I estimate a convergence equation for a panel of ten countries over 16 years (1995-2010). In the regression, trade with the other European Union member states as a share of total trade serves as a measure of European integration. I find a small, but significant medium-run growth bonus from integration, which is robust to alternative specifications of the regression equation and of the variables of interest. The results are confirmed by a supplementary analysis at the industry level using a difference-in-difference type of estimation strategy. The paper thus provides an argument in favour of European integration.
Subjects: 
European integration
central eastern Europe
economic growth
growth convergence
JEL: 
C23
F43
O47
R11
Document Type: 
Working Paper

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