Norwegian Rhapsody? The Political Economy Benefits of Regional Integration

Nauro Campos, Fabrizio Coricelli and Luigi Moretti

No 9098, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates whether joint economic and political integration leads to larger economic benefits than just economic integration. The identification strategy rests on the fact that Norway, at the time of the 1995 Enlargement of the European Union (EU), had successfully completed negotiations and fulfilled all accession requirements, taken membership in the European Economic Area (with full access to the Single Market), but decided in a referendum to reject full-fledged EU membership. Using the differences-in-differences and synthetic control methods with regional data, we find substantial politically driven economic benefits from EU membership: if Norway had joined the EU in 1995, productivity levels between 1995 and 2001 would have been 6% higher on average.

Keywords: political economy benefits; European Union; labor productivity; synthetic counterfactual method; regional data (search for similar items in EconPapers)
JEL-codes: C33 F15 F43 O52 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2015-06
New Economics Papers: this item is included in nep-eff and nep-int
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Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Norwegian Rhapsody? The Political Economy Benefits of Regional Integration (2015)
Working Paper: Norwegian Rhapsody? The Political Economy Benefits of Regional Integration (2015)
Working Paper: Norwegian Rhapsody? The Political Economy Benefits of Regional Integration (2015)
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