Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

The effect of the EU and the Euro on European Countries’ Economic Growth

Ivert Nordén, Robert William Efraim LU (2025) NEKH01 20251
Department of Economics
Abstract
As trade wars commence and European integration deepens it becomes increasingly important to investigate the effects that such actions have on the economy. This thesis investigates the effect that the EU and Eurozone has on the economic growth of its member nations. The study utilizes an augmented Solow-model in a fixed effects framework to see the effect that the EU and Euro has had on economic growth over the span of 30 years from 1990-2019 across 38 European countries. The study finds results that indicate that EU countries have experienced an increase in economic growth during the period but that this effect could be explained by other factors such as an increase in trade and capital investments. Whether or not the EU might be causing... (More)
As trade wars commence and European integration deepens it becomes increasingly important to investigate the effects that such actions have on the economy. This thesis investigates the effect that the EU and Eurozone has on the economic growth of its member nations. The study utilizes an augmented Solow-model in a fixed effects framework to see the effect that the EU and Euro has had on economic growth over the span of 30 years from 1990-2019 across 38 European countries. The study finds results that indicate that EU countries have experienced an increase in economic growth during the period but that this effect could be explained by other factors such as an increase in trade and capital investments. Whether or not the EU might be causing such an increase in trade and capital investment is however not explored within the essay. The Eurozone has on the other hand clear negative effects on economic growth both when examined by itself as well as when other explanatory factors were taken into account. This could be the result of a loss of shock resistance from the absence of an individual monetary policy combined with an economically turbulent time, or that the poor economic stability of a few countries within the region could have negatively affected the entirety of the region through their joint economic relationship. (Less)
Please use this url to cite or link to this publication:
author
Ivert Nordén, Robert William Efraim LU
supervisor
organization
course
NEKH01 20251
year
type
M2 - Bachelor Degree
subject
keywords
Economic Growth, European Union, Euro, Fixed effects estimator
language
English
id
9208466
date added to LUP
2025-09-12 09:08:09
date last changed
2025-09-12 09:08:09
@misc{9208466,
  abstract     = {{As trade wars commence and European integration deepens it becomes increasingly important to investigate the effects that such actions have on the economy. This thesis investigates the effect that the EU and Eurozone has on the economic growth of its member nations. The study utilizes an augmented Solow-model in a fixed effects framework to see the effect that the EU and Euro has had on economic growth over the span of 30 years from 1990-2019 across 38 European countries. The study finds results that indicate that EU countries have experienced an increase in economic growth during the period but that this effect could be explained by other factors such as an increase in trade and capital investments. Whether or not the EU might be causing such an increase in trade and capital investment is however not explored within the essay. The Eurozone has on the other hand clear negative effects on economic growth both when examined by itself as well as when other explanatory factors were taken into account. This could be the result of a loss of shock resistance from the absence of an individual monetary policy combined with an economically turbulent time, or that the poor economic stability of a few countries within the region could have negatively affected the entirety of the region through their joint economic relationship.}},
  author       = {{Ivert Nordén, Robert William Efraim}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The effect of the EU and the Euro on European Countries’ Economic Growth}},
  year         = {{2025}},
}