IDEAS home Printed from https://ideas.repec.org/p/zbw/ifsowp/311852.html
   My bibliography  Save this paper

Economic polarization in the European Union: Development models in the race for the best location

Author

Listed:
  • Dominy, Jonas
  • Gräbner-Radkowitsch, Claudius
  • Heimberger, Philipp
  • Kapeller, Jakob

Abstract

This paper analyzes developmental trajectories in the EU. In doing so, it diagnoses economic polarization on two different levels: for one, we observe a divergence of average incomes across EU countries as a persistent empirical feature associated with European integration. For another, European economic integration in general and the introduction of the Euro in particular are associated with the emergence of heterogeneous developmental trajectories, which build on, and intensify differences in technological capabilities, institutional and legal setups, as well as labor market characteristics. When clustering countries with reference to similarities in terms of macroeconomic and institutional characteristics across countries, we find evidence for the existence of four distinct development models: core, periphery, and workbench economies, as well as financial hubs. Each of these groups is defined by distinct technological, institutional, and macroeconomic characteristics. Our findings point to suitable ways for extending and refining existing typological approaches, such as the Varieties of Capitalism or the growth model approach, thereby allowing us to better account for the heterogeneity of developmental pathways emerging in the course of an intensifying European race for the best location.

Suggested Citation

  • Dominy, Jonas & Gräbner-Radkowitsch, Claudius & Heimberger, Philipp & Kapeller, Jakob, 2025. "Economic polarization in the European Union: Development models in the race for the best location," ifso working paper series 46, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
  • Handle: RePEc:zbw:ifsowp:311852
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/311852/1/1917766645.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Economic polarization; European integration; Development models; growth models; European Union;
    All these keywords.

    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • F6 - International Economics - - Economic Impacts of Globalization
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions

    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:zbw:ifsowp:311852. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/isduede.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.