Abstract
Abstract The recent vote by Britain to quit the European Union (EU) and the political pressures in some member countries to exit the EU necessitates a critical evaluation of the long-run economic benefits of economic integration or union to member countries. Consequently, this paper examines recent empirical studies on the nexus between economic integration and economic growth in developed and developing countries. It also investigates the literature concerning the impact of financial integration on economic growth. Evidence from the study shows that although other views exist, there is overwhelming support for the growthenhancing effects of economic integration, albeit common currency adoption has an insignificant effect on economic growth. The channels through which economic integration exerts its influence on economic growth include capital accumulation, productivity growth, trade, and financial integration. However, the study shows that the impact of financial integration on economic growth is inconclusive. Based on the findings, the study draws some implications and policy options.
Highlights
Theoretical evidence indicates that economic integration or union has the capacity to promote capital accumulation, productivity, and economic growth
The recent vote of Britain to quit the European Union (EU) and the political pressures in some member countries to exit the EU necessitates a critical evaluation of the long-run economic benefits of economic union to member countries
It is fundamental for policymakers to understand the nexus between economic integration and economic growth so as to formulate appropriate economic integration policies that would be beneficial to member countries
Summary
Theoretical evidence indicates that economic integration or union has the capacity to promote capital accumulation, productivity, and economic growth. The debate concerning the role of economic and financial integration on economic growth has intensified in recent years, as different empirical studies have focused on whether the economic integrations or unions have long-run economic benefits for member countries. This paper offers a rigorous and informative guide of decades of theoretical and empirical studies on the integration-growth nexus It shows the channels through which economic integration or union exerts its influence on economic growth such as financial integration, productivity growth, capital accumulation and trade. The novelty of this paper is that it will be useful to several regions or countries in Europe, Asia, Africa and Latin America that practice or intend to practice economic integration or adopt common currency This is essential because this paper aggregated the empirical outcomes regarding the long-run economic benefits of integration to member countries.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
