The Impact of the Key Structural Shifts on Euro Area's Endogeneity Formation
Year: 2025
Type: article
Abstract: This article tests the change in OCA Endogeneity, respectively before and after the Euro launch and Fiscal crisis, to assess how much improvement has been achieved after those structural shifts. Improving upon the existing literature, the test methodology presented here proffers a new standardized tool. The launch of the euro has generally improved Endogeneity more compared to the Fiscal crisis; but, especially in the southern European countries, the result was quite the opposite. Surprisingly, Germany, which has the most efficient and competitive economy in the Euro area, shows the lowest Endogeneity improvement rankings especially after 2010. This German case might tell us about the ‘original root’ of the current economic downturn after reopening from the Covid era. Therefore, it could be inferred that the Endogeneity formation was irregular and disproportionate around two periods. This imbalance has provided a structural background limiting self-sustaining resilience in the area's economy until now. JEL Classification Numbers: C01; E44; F15; F45; J30
Source: Journal of Economic Integration
DOI: 10.11130/jei.2024057
Author: Wi-Dae Kim
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408760171