Trade accelerates economic convergence in EU countries, boosting growth rates.
The article explores how trade affects the convergence of export volumes in EU countries. By analyzing data from 26 EU countries, the researchers found that trade can speed up the convergence process among economies. Specifically, they observed that export volumes per capita tend to converge at a rate of about 0.05-0.06, with half-lives of 12-13 years. When considering country- or time-specific effects, the convergence rates were even higher, with half-lives of 2-4 years.