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Econometric Analysis of Impact of Relative Location on the Growth Effects of Economic Integration. The case of the EU

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  • Tomasz Brodzicki

    (Department of Economics, University of Gdansk)

Abstract

In the paper we construct two novel indices of relative centrality – peripheriality in order to test whether location has an impact on medium and long-run growth rates of the European Union Member States. We utilize two popular econometric approaches – standard cross-sectional growth regressions as well as dynamic panel data models. The study is undertaken for 27 developed economies (15 EU Member States and 12 non-members) within a period 1960 to 1999. In accordance with the new economic geography models (NEG) our results indicate that relative location within large regional integration arrangement such as the European Union could at least to some extent affect growth effects associated with the process of economic integration. Furthermore, the benefits are found to be asymmetrical between the core and peripheral states. These results, however, need further empirical investigation as they are found to be rather sensitive.

Suggested Citation

  • Tomasz Brodzicki, 2005. "Econometric Analysis of Impact of Relative Location on the Growth Effects of Economic Integration. The case of the EU," Working Papers of Economics of European Integration Division 0603, The Univeristy of Gdansk, Faculty of Economics, Economics of European Integration Division, revised Jan 2006.
    • Handle: RePEc:gda:wpaper:0603
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    File URL: http://gnu.univ.gda.pl/~keie/ao9.doc
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    More about this item

    Keywords

    economic growth; trade; openness; economic development;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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