Growth Effects of

Wagner, Helmut

doi:2002.17.4.623

Journal of Economic Integration 2002 April;17(4) :623-649.
DOI: https://doi.org/10.11130/jei.2002.17.4.623

Growth Effects of "Heterogeneous" Economic Integration: the Example of EMU Enlargement

Helmut Wagner

University of Hagen

ABSTRACT

At present, the European Union (EU) is facing the biggest round of enlargement in its history. Many of the EU accession countries, which are less developed than the incumbents, will seek accession to the European Monetary Union (EMU) soon after the required two-year qualifying period. This is justified by the effort to avoid the danger of financial instability in the period prior to euro-introduction. However, by trying to avoid this danger, some of them may run into another danger, namely of a lack of real convergence. The paper investigates this danger. JEL Classifications (F02, O49, P2)

Keywords: Economic Integration | Monetary Integration | European Integration | Transition Economies | Convergence