Institutional Integration and Productivity Growth: Evidence from the 1995 Enlargement of the European Union

32 Pages Posted: 9 Nov 2021

See all articles by Nauro Campos

Nauro Campos

University College London

Fabrizio Coricelli

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

Emanuele Franceschi

Université Paris I Panthéon-Sorbonne

Date Written: November 2021

Abstract

This paper studies the productivity effects of integration deepening. The identification strategy exploits the 1995 European Union (EU) enlargement, when all candidate countries joined the Single Market but one — Norway — did not join the EU. Our synthetic difference-in-differences estimates on sectoral and regional data suggest had Norway chosen deeper integration, the average Norwegian region would have experienced an increase in yearly productivity growth of about 0.6 percentage points. This method also helps determining the sources of heterogeneity, apparently inherent to integration, highlighting higher costs of the missed deeper integration for more peripheral regions and industrial sector.

Keywords: economic integration, European Economic Area, European Union, Institutional integration, Productivity Growth

JEL Classification: C33, F15, F55, O43, O52

Suggested Citation

Campos, Nauro and Coricelli, Fabrizio and Franceschi, Emanuele, Institutional Integration and Productivity Growth: Evidence from the 1995 Enlargement of the European Union (November 2021). CEPR Discussion Paper No. DP16696, Available at SSRN: https://ssrn.com/abstract=3960300

Nauro Campos (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Fabrizio Coricelli

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

Emanuele Franceschi

Université Paris I Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

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