EU shocks drive economic growth in newly acceded countries through trade.
The article examines how shocks from the European Union affect the economies of newly joined countries. The researchers found that when the EU experiences a technology change, it boosts the supply of goods in these countries. On the other hand, when the EU increases its money supply, it reduces the demand for goods in these countries. The study split the countries into two groups and discovered that trade plays a significant role in how EU shocks spread. Overall, monetary changes have a big impact on the economies of these countries, while technology changes affect their exports.