The Impact of Economic and Financial Integration on Economic Growth

Abstract

European market is seen from non-members countries as opportunity to reinforce the various sectors of the economy, removing barriers for products, services, inputs, etc. allowing the introduction of new firms in international markets. This study examines the role of the economic and financial integration on economic growth. Data regarding nine developing European member countries is obtained from International Monetary Fund database for the period spans from 1990 to 2004 the period before membership and the period after membership 2005 to 2015. Gross Domestic Product Import, Export, Foreign Direct Investment, Consumer Price Index, Exchange rate are selected as proxies for economic growth. Empirical findings indicate that trade liberalization leads to the removal of barriers for products and factors of production and facilitates the introduction of new firms in various markets national, leading to an increase in competition that will lead to lower costs for consumers who will have more choice and will be able to consume more goods and higher quality. Also based in all the countries of this study, it is a good thing for Albania to join UE because there will be different profits for our country.