European Economic integration and its impact on growth

This empirical study investigates the impact of European economic integration on the GDP growth rate by means of panel data regression analysis. The data sample consists of all 27 current members of the European Union over the time period from 1990 to 2010. Economic integration is measure by various different indicators. For most of these indicators, the stidy finds evidence that increasing economic integration leads to increases in the growth rate. Furthermore this study examines the possibility of asymmetric growth enhancing effects between large countries and small countries. No conclusive evidence is found that proves the existence of asymmetric effects of economic integration on the growth rate. Key words: economic integration, growth, Europe, EU, GDP