European Growth Phases, 1890-1992 Period Real GDP Real GDP per capita Real GDP per hour 1890-1913 Belle époque 2.6 1.7 1.6 1913-1950 1st and 2nd world war. Great depression 30s 1.4 1.0 1.9 1950-1973 Golden era 4.6 3.8 4.7 1973-1992 Prod’ity slowdown 2.0 2.7 Whole Period 1890-1992 2.5 Source: Crafts and Toniolo. 1996.

These nations grew during WWII Growth in the WWII Reconstruction Phase. The Set-Back: (Pre-war year when GDP equalled that of 1945) Back-on-Track Year (Year GDP attained highest pre-war level) Reconstruction Growth (rate 1945 to column 2 year) Austria 1886 1951 15.2% Belgium 1924 1948 6.0% Denmark 1936 1946 13.5% Finland 1938 1945 n.a. France 1891 1949 19.0% Germany 1908 Italy 1909 1950 11.2% Netherlands 1912 1947 39.8% Norway 1937 9.7% Sweden These nations grew during WWII Switzerland UK Source: Crafts and Toniolo. 1996.

GDP per capita & Rankings, 1950 and 1973 (1990 international dollars). European Rank 1950 Change in Rank 1950-73 GDP Growth Rate EEC average 4,825 8.0 + 1.2 4.2 Netherlands 5,850 5 -1 3.4 Belgium 5,346 6 -2 3.5 France 5,221 7 + 2 4.0 Germany 4,281 9 + 5 5.0 Italy 3,425 13 4.9 EFTA average 6,835 3.6 -1.4 3.0 Switzerland 8,939 1 3.1 UK 6,847 2 -5 2.4 Sweden 6,738 3 + 1 Denmark 6,683 4 Norway 4,969 8 -4 3.2 Finland 4,131 10 Austria 3,731 11 Others average 2,401 14.3 -0.3 5.2 Ireland 3,518 12 -3 Spain 2,397 14 5.8 Portugal 2,132 15 5.6 Greece 1,558 16 6.2 For Comparison USA 9,573 Japan 1,873

Experience of Spain & Portugal Other MR growth effects: investment rate Experience of Spain & Portugal

Other MR growth effects: investment rate Experience of Ireland

Other MR growth effects: investment rate Experience of Greece

Source: Badinger 2005. Growth effects of economic integration

From Badinger (2005)

From Badinger (2005)

Conclusions Badinger (2005)

Conclusions Badinger (2005)

Conclusions Badinger (2005)

Conclusions Deardoff and Stern (2005)

Catch-up effect

GDP Growth