IDEAS home Printed from https://ideas.repec.org/p/wfo/wpaper/y2018i572.html
   My bibliography  Save this paper

25 Years Single Market: Which Trade and Growth Effects?

Author

Listed:
  • Fritz Breuss

Abstract

The EU Single Market and the Maastricht Treaty are now aged 25. In this short history many events marked the way: the creation of EMU in 1999, the introduction of the euro in 2002, and the great EU enlargement starting in 2004. And lastly – for the first time – with the Brexit a reverse of the process of European integration takes place. The recession of 2009 and the Euro crisis in 2010 led to a setback in the economic development in the EU. A quarter of a century invites to look back about the achievements. How much trade and economic growth could be created by the Single Market plus euro plus EU enlargement? These questions are treated here with the help of a consistent integration model. Embedded into an endogenous growth model approach growth and trade effects for EU and EFTA countries are estimated. It turns out that (taking also into account GATT liberalisation) the European integration added to per-capita GDP 0.5 percentage point to EU 28 countries but only 0.2 percentage point to EFTA countries. Trade openness increased by 0.9 percentage point of GDP in EU 28 and by 0.3 percentage point in EFTA countries.

Suggested Citation

  • Fritz Breuss, 2018. "25 Years Single Market: Which Trade and Growth Effects?," WIFO Working Papers 572, WIFO.
  • Handle: RePEc:wfo:wpaper:y:2018:i:572
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/61506
    File Function: abstract
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2018. "Doing Business 2018," World Bank Publications - Books, The World Bank Group, number 28608, December.
    2. Klaus Weyerstraß, 2018. "Entwicklung, Determinanten und Bedeutung der totalen Faktorproduktivität," FIW Policy Brief series 038, FIW.
    3. Marilyne Huchet†Bourdon & Chantal Le Mouël & Mariana Vijil, 2018. "The relationship between trade openness and economic growth: Some new insights on the openness measurement issue," The World Economy, Wiley Blackwell, vol. 41(1), pages 59-76, January.
    4. Filip Keereman & Istvan Szekely (ed.), 2010. "Five Years of an Enlarged EU," Springer Books, Springer, number 978-3-642-12516-4, September.
    5. Berger, Helge & Nitsch, Volker, 2008. "Zooming out: The trade effect of the euro in historical perspective," Journal of International Money and Finance, Elsevier, vol. 27(8), pages 1244-1260, December.
    6. Mika, Alina & Zymek, Robert, 2018. "Friends without benefits? New EMU members and the “Euro Effect” on trade," Journal of International Money and Finance, Elsevier, vol. 83(C), pages 75-92.
    7. Martin Braml & Gabriel Felbermayr & Wolfgang Weiß & Fritz Breuss & Christoph Scherrer & Christoph Herrmann & Caroline Glöckle & Benjamin Jung & Tim Krieger & Laura Renner & Bernd Lange, 2018. "Trade War and Its Implications: the Beginning of the End for WTO?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(11), pages 03-29, June.
    8. Harald Badinger & Fritz Breuss, 2009. "Country size and the trade effects of the euro," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(2), pages 207-223, July.
    9. Facundo Alvaredo & Thomas Piketty & Emmanuel Saez & Lucas Chancel & Gabriel Zucman, 2018. "World Inequality Report 2018," PSE-Ecole d'économie de Paris (Postprint) halshs-01885458, HAL.
    10. Robert Zymek & Alejandro Cunat, 2017. "International Value-Added Linkages in Development Accounting," Edinburgh School of Economics Discussion Paper Series 281, Edinburgh School of Economics, University of Edinburgh.
    11. Birgit Bednar-Friedl & Jörn Kleinert (ed.), 2016. "Dynamic Approaches to Global Economic Challenges," Springer Books, Springer, edition 1, number 978-3-319-23324-6, September.
    12. Fritz Breuss, 2017. "The United States-Euro Area Growth Gap Puzzle," WIFO Working Papers 541, WIFO.
    13. König, Jörg & Ohr, Renate, 2012. "Homogeneous groups within a heterogeneous community: Evidence from an index measuring European economic integration," University of Göttingen Working Papers in Economics 138, University of Goettingen, Department of Economics.
    14. Charles I. Jones, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 495-525.
    15. Fritz Breuss, 2010. "Globalisation, EU enlargement and income distribution," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 6(1/2), pages 16-34.
    16. Joshua J. Lewer & Hendrik Van den Berg, 2003. "How Large Is International Trade’s Effect on Economic Growth?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 363-396, July.
    17. Klaus S. Friesenbichler & Christian Glocker & Werner Hölzl & Serguei Kaniovski & Agnes Kügler & Andreas Reinstaller & Gerhard Streicher & Iulia Siedschlag & Mattia Di Ubaldo & Zuzanna Studnicka & Robe, 2017. "Drivers and Obstacles to Competitiveness in the EU. The Role of Value Chains and the Single Market," WIFO Studies, WIFO, number 60837, February.
    18. Marilyne Huchet & Chantal Le Mouel & Mariana Vijil, 2018. "The relationship between trade openness and economic growth: Some new insights on the openness measurement issue," Post-Print hal-01883878, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fritz Breuss, 2021. "25 Years of Austria's EU Membership. Quantifying the Economic Benefits With a DSGE Model," WIFO Working Papers 603, WIFO.
    2. González-Garrido, A. & Gaztañaga, H. & Saez-de-Ibarra, A. & Milo, A. & Eguia, P., 2020. "Electricity and reserve market bidding strategy including sizing evaluation and a novel renewable complementarity-based centralized control for storage lifetime enhancement," Applied Energy, Elsevier, vol. 262(C).
    3. Fritz Breuss, 2020. "Makroökonomische Effekte der 25- jährigen EU-Mitgliedschaft Österreichs," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/20, pages 27-48.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fritz Breuss, 2012. "EU-Mitgliedschaft Österreichs. Eine Evaluierung in Zeiten der Krise," WIFO Studies, WIFO, number 45578, February.
    2. Fritz Breuss, 2020. "Makroökonomische Effekte der 25- jährigen EU-Mitgliedschaft Österreichs," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1-Q2/20, pages 27-48.
    3. Fritz Breuss, 2009. "An evaluation of the EU's Fifth Enlargement With special focus on Bulgaria and Romania," European Economy - Economic Papers 2008 - 2015 361, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Glick, Reuven & Rose, Andrew K., 2016. "Currency unions and trade: A post-EMU reassessment," European Economic Review, Elsevier, vol. 87(C), pages 78-91.
    5. Mehmet Balcilar & Ojonugwa Usman & George N. Ike, 2023. "Investing green for sustainable development without ditching economic growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 728-743, April.
    6. Yan Zhang & Jiekuan Zhang, 2023. "Revisiting Tourism Development and Economic Growth: A Framework for Configurational Analysis in Chinese Cities," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    7. Ibrahiem, Dalia M. & Hanafy, Shaimaa A., 2021. "Do energy security and environmental quality contribute to renewable energy? The role of trade openness and energy use in North African countries," Renewable Energy, Elsevier, vol. 179(C), pages 667-678.
    8. Ohr, Renate & Özalbayrak, Mehmet, 2012. "The Euro: A "MUST" for small European states?," University of Göttingen Working Papers in Economics 131, University of Goettingen, Department of Economics.
    9. Sena Kimm Gnangnon, 2019. "Remittances Inflows and Trade Policy," Remittances Review, Remittances Review, vol. 4(2), pages 117-142, October.
    10. Isaac Mensah, 2019. "The euro's effect on trade: an analysis of "old" and "new" EMU members," Review of Economics and Institutions, Università di Perugia, vol. 10(1).
    11. Mario Larch & Joschka Wanner & Yoto V. Yotov & Thomas Zylkin, 2017. "The Currency Union Effect: A PPML Re-assessment with High-Dimensional Fixed Effects," CESifo Working Paper Series 6464, CESifo.
    12. Michael Peneder & Nicole Schmidt & Anna Strauss & Stefan Weingärtner, 2018. "Österreichs Wettbewerbsfähigkeit im internationalen Vergleich," WIFO Working Papers 565, WIFO.
    13. Jia Hou, 2020. "Revisiting the trade effects of the euro: data sources and various samples," Empirical Economics, Springer, vol. 59(6), pages 2731-2777, December.
    14. Ashiru Ibrahim & Michael Rabiu Abdulmalik, 2023. "Do trade openness and governance matter for economic growth in Africa? A case of EAC and WAEMU countries," International Economics and Economic Policy, Springer, vol. 20(3), pages 389-412, July.
    15. Gnangnon, Sèna Kimm, 2019. "Financial Development and Tax Revenue in Developing Countries: Investigating the International Trade and Economic Growth Channels," EconStor Preprints 206628, ZBW - Leibniz Information Centre for Economics.
    16. Tahir, Muhammad & Hayat, Arshad, 2020. "Does International Trade Promote Economic Growth? An Evidence from Brunei Darussalam," MPRA Paper 102504, University Library of Munich, Germany.
    17. Maiya RAKHIMOVA & Galina KAKENOVA & Almagul KUSHPAYEVA, 2023. "Cooperation Between The Eu And Post-Soviet Countries: Western Authors’ Approaches To Analysing The Issue," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 23(2), pages 97-112.
    18. Natalie Chen & Dennis Novy, 2022. "Gravity and Heterogeneous Trade Cost Elasticities," The Economic Journal, Royal Economic Society, vol. 132(644), pages 1349-1377.
    19. Nanyue Wang & Pourya Seyedmatin, 2020. "Modeling the Causal Linkages between Trade Openness, Innovation, Financial Development and Economic Growth in Asian Countries," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 10(8), pages 194-203, August.
    20. Douglas L. Campbell & Aleksandr Chentsov, 2017. "Breaking Badly: The Currency Union Effect on Trade," Working Papers w0241, Center for Economic and Financial Research (CEFIR).

    More about this item

    Keywords

    European Integration; Maastricht Treaty; Model simulations; Single Market;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2018:i:572. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.