Economic Growth in the EU
Economic Growth in the EU. María Garcia-Vega and José Herce investigate whether economic integration promotes interdependent growth among countries. They conclude that this has been indeed the case for advanced OECD countries and that, for those countries belonging to the EU, through successive enlargements, the effect has been even stronger. More precisely, if every (trade) partner of a given country experiences an extra growth of 1 percentage point, this economy will profit from an extra 0.5 point, and if this country belongs to the EU it will have an additional increase of its rate of growth of 0.2 points. Both figures can be interpreted as growth externalities with the latter suggesting that an integration process like the one followed by the EU has an (positive) effect on growth. "Interdependent Growth in the EU: The Role of Trade" is published by ENEPRI.
By ENEPRI, Europe.