Is Europe disintegrating? Macroeconomic divergence, structural polarization, trade and fragility

Arbeitspapier

This paper analyses economic developments in the Eurozone over the period 1999-2016 by developing a theoretical framework that traces divergent path developments across Eurozone countries to the times before the financial crisis. We argue that macroeconomic divergence between core and periphery countries is driven by 'structural polarization' in industrial structures: the emergence of export-driven growth in the core and debt-driven growth in the periphery is linked to the micro level of technological capabilities and firm performance. Pushing for convergence within Europe requires the simultaneous implementation of three intertwined policy programs: coordinated macroprudential financial regulation, active industrial policies aiming at a catching-up process in terms of innovative activity and technological capabilities for firms in the European periphery, and progressive re-distributional policies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ICAE Working Paper Series ; No. 64

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Issues of Monetary Unions
• Subject: Polarization ; European Monetary Union ; industrial policy ; financial regulation ; growth trajectories

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gräbner, Claudius ; Heimberger, Philipp ; Kapeller, Jakob ; Schütz, Bernhard
• Event: Veröffentlichung
• (who): Johannes Kepler University Linz, Institute for Comprehensive Analysis of the Economy (ICAE)
• (where): Linz
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/171439
• Last update: 10.03.2025, 11:45 AM CET