The impact of EMU integration on GDP and productivity in the Baltic countries
We examined the effect of the accession to the Eurozone using the method of synthetic control groups. This method enabled us to compare the performance of the Estonian, Lithuanian, and Latvian economies with a combination of countries that have not accessed the Eurozone yet. We constructed a synthe...
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| Format: | Article |
| Language: | English |
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IEECA
2022-12-01
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| Series: | Journal of Eastern European and Central Asian Research |
| Subjects: | |
| Online Access: | https://ieeca.org/journal/index.php/JEECAR/article/view/1038 |
| _version_ | 1811190231018242048 |
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| author | Eva Muchová Agáta Šuláková |
| author_facet | Eva Muchová Agáta Šuláková |
| author_sort | Eva Muchová |
| collection | DOAJ |
| description |
We examined the effect of the accession to the Eurozone using the method of synthetic control groups. This method enabled us to compare the performance of the Estonian, Lithuanian, and Latvian economies with a combination of countries that have not accessed the Eurozone yet. We constructed a synthetic Estonia, Lithuania, and Latvia model as synthetic control units from a donor pool to evaluate the impact of the Economic and Monetary Union (EMU) on macroeconomic performance through synthetic control groups. The donor pool in our model consisted of European countries that do not use the euro. We used annual data from 1990 to 2019 for models with GDP and productivity. The results indicate that deciding to enter the Eurozone could increase productivity – measured as GDP over employment. Or in other words - if these Baltic countries did not join the euro, their GDP per employer would be lower than the actual. Accession to the Eurozone or ERM II has not increased or decreased GDP in Baltic countries as much as productivity.
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| first_indexed | 2024-04-11T14:47:50Z |
| format | Article |
| id | doaj.art-15070528338540a7aff7562f8f93193c |
| institution | Directory Open Access Journal |
| issn | 2328-8272 2328-8280 |
| language | English |
| last_indexed | 2024-04-11T14:47:50Z |
| publishDate | 2022-12-01 |
| publisher | IEECA |
| record_format | Article |
| series | Journal of Eastern European and Central Asian Research |
| spelling | doaj.art-15070528338540a7aff7562f8f93193c2022-12-22T04:17:34ZengIEECAJournal of Eastern European and Central Asian Research2328-82722328-82802022-12-019610.15549/jeecar.v9i6.1038The impact of EMU integration on GDP and productivity in the Baltic countriesEva Muchová0Agáta Šuláková1University of Economics in BratislavaSlovakia We examined the effect of the accession to the Eurozone using the method of synthetic control groups. This method enabled us to compare the performance of the Estonian, Lithuanian, and Latvian economies with a combination of countries that have not accessed the Eurozone yet. We constructed a synthetic Estonia, Lithuania, and Latvia model as synthetic control units from a donor pool to evaluate the impact of the Economic and Monetary Union (EMU) on macroeconomic performance through synthetic control groups. The donor pool in our model consisted of European countries that do not use the euro. We used annual data from 1990 to 2019 for models with GDP and productivity. The results indicate that deciding to enter the Eurozone could increase productivity – measured as GDP over employment. Or in other words - if these Baltic countries did not join the euro, their GDP per employer would be lower than the actual. Accession to the Eurozone or ERM II has not increased or decreased GDP in Baltic countries as much as productivity. https://ieeca.org/journal/index.php/JEECAR/article/view/1038EurozoneEstoniaLithuaniaLatviaproductivitygross domestic product |
| spellingShingle | Eva Muchová Agáta Šuláková The impact of EMU integration on GDP and productivity in the Baltic countries Journal of Eastern European and Central Asian Research Eurozone Estonia Lithuania Latvia productivity gross domestic product |
| title | The impact of EMU integration on GDP and productivity in the Baltic countries |
| title_full | The impact of EMU integration on GDP and productivity in the Baltic countries |
| title_fullStr | The impact of EMU integration on GDP and productivity in the Baltic countries |
| title_full_unstemmed | The impact of EMU integration on GDP and productivity in the Baltic countries |
| title_short | The impact of EMU integration on GDP and productivity in the Baltic countries |
| title_sort | impact of emu integration on gdp and productivity in the baltic countries |
| topic | Eurozone Estonia Lithuania Latvia productivity gross domestic product |
| url | https://ieeca.org/journal/index.php/JEECAR/article/view/1038 |
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