Do institutions of the euro area converge?

Beyaert, Arielle; García-Solanes, José; López-Gómez, Laura

doi:10.1016/j.ecosys.2019.100720

Cited by 12 publications

(11 citation statements)

References 26 publications

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“…Some studies found that since the euro’s introduction, institutional reform in some smaller euro countries has failed to materialize. Beyaert, Garcia‐Solanes and Lopez‐Gomez (2019) find that there has been no convergence in institutional quality between the end of 1998 and 2018 in the currency union. There is some evidence that the attempt to join the euro may have led to improvements in institutions in member states with lower incomes.…”

Section: Resultsmentioning

confidence: 99%

Convergence in the Eurozone: Progress Towards the Goal?

Miles

2020

J of App Econs and Policy

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Convergence in per capita income across member countries is a stated goal of the European Union. This goal applies, of course, to all eurozone nations. The impact of a common currency on income convergence is both theoretically and empirically ambiguous, however. Previous studies on European convergence have suffered from methodological problems. In this paper, we utilize the pair‐wise approach of Pesaran. We use, among other tests, the RALS‐LM technique which allows for endogenous breaks. This will yield greater power, as well as shed light on economic changes, such as the advent of the euro, which may have promoted or hindered convergence. Results indicate little evidence of convergence within the eurozone. Moreover, convergence is more often found between euro and non‐euro countries than within the euro itself, suggesting the common currency had at best a neutral, or even negative impact on income convergence.

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Section: Resultsmentioning

confidence: 99%

Convergence in the Eurozone: Progress Towards the Goal?

Miles

2020

J of App Econs and Policy

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“…Using panel root tests, Beyaert et al (2019) reject the hypothesis of overall convergence within the euro area and also within smaller sub-groups over the period 1998 to 2018. In addition, they even report an institutional degradation in Eastern Eurozone members.…”

Section: Institutional Convergencementioning

confidence: 95%

“…Only since very recently, the empirical literature started to investigate institutional convergence. While Beyaert et al (2019) and Pérez-Moreno et al (2020) focus on the euro area, the studies of Wagner (2016, 2019) and Glawe and Wagner (2021) also include (potential future) EU member countries that are not part of the Eurozone.…”

Section: Institutional Convergencementioning

confidence: 99%

Divergence Tendencies in the European Integration Process: A Danger for the Sustainability of the E(M)U?

Glawe

Wagner

2021

JRFM

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The European integration process started with the aim of reducing the differences in income and/or living standards between the participating countries over time. To achieve this, a certain alignment of institutions and structures was seen as a necessary precondition. While the goal of this income and institutional convergence was successfully achieved over a long period of time, this convergence development has weakened or even turned into divergence in the last one to two decades. This paper provides an overview of the empirical evidence for these convergence and divergence developments and develops policy implications (the challenges and possible ways out).

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“…Only recently, studies have started to examine the convergence patterns of, for example, institutional quality, also within the EU (cf. Beyaert et al 2019;Glawe and Wagner 2021a).…”

Section: Concluding Remarks and Policy Implicationsmentioning

confidence: 99%

Schooling Ain’t Learning in Europe: A Club Convergence Perspective

Glawe

Méndez

2022

Comp Econ Stud

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Convergence in human capital is a key precondition to achieve income convergence in the European Union; however, so far research on this topic has nearly been absent. Our paper contributes to the literature by investigating the human capital convergence dynamics within the EU over the period 1990–2016 using a nonlinear dynamic factor model. While we find evidence of absolute convergence with respect to the average years of schooling, we identify four convergence clubs with respect to learning outcomes, and the divergence across those four clubs is increasing over time. A subsequent analysis of the determinants of the learning clubs reveals that institutional and learning spillovers are decisive for whether an EU Member State is on a high or low human capital trajectory.

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Do institutions of the euro area converge?

Cited by 12 publications

References 26 publications

Convergence in the Eurozone: Progress Towards the Goal?

Convergence in the Eurozone: Progress Towards the Goal?

Divergence Tendencies in the European Integration Process: A Danger for the Sustainability of the E(M)U?

Schooling Ain’t Learning in Europe: A Club Convergence Perspective

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