Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250495 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14834
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper studies the productivity effects of integration deepening. The identification strategy exploits the 1995 European Union (EU) enlargement, when all candidate countries joined the Single Market but one - Norway - did not join the EU. Our synthetic difference-in-differences estimates on sectoral and regional data suggest had Norway chosen deeper integration, the average Norwegian region would have experienced an increase in yearly productivity growth of about 0.6 percentage points. This method also helps determining the sources of heterogeneity, apparently inherent to integration, highlighting higher costs of the missed deeper integration for more peripheral regions and industrial sector.
Subjects: 
European Union
productivity growth
economic integration
institutional integration
European Economic Area
JEL: 
C33
F15
F55
O43
O52
Document Type: 
Working Paper

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