Institutional Integration and Economic Growth

Posted: 28 Sep 2020

See all articles by Fabrizio Coricelli

Fabrizio Coricelli

University of Siena - Department of Political and International Sciences ; Paris School of Economics (PSE); Centre for Economic Policy Research (CEPR)

Nauro Campos

University College London

Luigi Moretti

Université Paris I Panthéon-Sorbonne

Date Written: 2019

Abstract

The literature on the growth effects of European integration remains inconclusive. This is due to severe methodological difficulties mostly driven by country heterogeneity. This paper addresses these concerns using the synthetic control method. It constructs counterfactuals for countries that joined the European Union (EU) from 1973 to 2004. We find that growth effects from EU membership are large and positive, with Greece as the exception. Despite substantial variation across countries and over time, we estimate that without European integration, per capita incomes would have been, on average, approximately 10% lower in the first ten years after joining the EU.

Keywords: Economic Growth, Integration Institutions, European Union, Synthetic Control Method

JEL Classification: C33, F15, N14, N44, O52

Suggested Citation

Coricelli, Fabrizio and Campos, Nauro and Moretti, Luigi, Institutional Integration and Economic Growth (2019). Journal of Monetary Economics, Vol. 103, No. C, 2019, Available at SSRN: https://ssrn.com/abstract=3671360

Fabrizio Coricelli (Contact Author)

University of Siena - Department of Political and International Sciences ( email )

Via Mattioli, 10
Siena, 53100
Italy

Paris School of Economics (PSE)

48 Boulevard Jourdan
Paris, 75014 75014
France

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Nauro Campos

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Luigi Moretti

Université Paris I Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

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