Author(s): Yusuf BAYRAKTUTAN, Ali Rıza SOLMAZ

The main objective of this study is to identify, assess and make policy recommendations for the tendency of income differentiation among members of the European Union. It is up to the 1950s to include income differences between countries or regions in the literature. The economic integration of academic and political interest with similar timing has given a new dimension to the debate on polarization in the light of European experience. In this study, 25 EU members' 2004-2016 data were analyzed by panel data method to examine the polarization results of the integration. The series of stations were determined and Driscoll-Kraay (1998) estimator was used to estimate the model and the Granger causality test was performed. Polarization was not found in 25 EU countries in the direction of finding. On the contrary, the increase in the average growth rate has reached to the result that affects the growth rates of the country positively.


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