Institutions, integration and divergence : lessons from Europe
MWP, Video Lecture, 2015/06
CARLIN, Wendy, Institutions, integration and divergence : lessons from Europe, MWP, Video Lecture, 2015/06 - https://hdl.handle.net/1814/69069
Retrieved from Cadmus, EUI Research Repository
Economists frequently assume that deeper economic integration promotes the convergence of economic regions or countries. To address the connection between institutions, markets and economic development, I begin with the thesis that within an integrated area, two ‘institutions-culture’ conventions can co-exist. Deeper integration can raise the costs of exiting the weaker ‘Southern’ convention because the South benefits from gains from trade. The second thesis is that more integration brings economic advantages but it does not necessarily bring with it the reform of the underlying convention. The gains from trade mean the South specializes more in activities that reinforce its inferior convention. The third thesis is that strong institutions are the precondition for long term convergence and facilitate adjustment to shocks. To illustrate these theses, I use evidence from post-unification Italy, post re-unification Germany and from the economic integration of the Eurozone.
Lecture delivered at the European University Institute in Florence on 17 May 2015; A video interview with the presenter was recorded on 17 June 2015
Cadmus permanent link: https://hdl.handle.net/1814/69069
External link: https://youtu.be/DYbUQdE-ETY
Series/Number: MWP; Video Lecture; 2015/06
Publisher: European University Institute
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