A wavelet analysis of globalization and growth in eurozone: the case of France

A wavelet analysis of globalization and growth in eurozone: the case of France

The eurozone confronted with different severe challenges in the last years, from the financial and economic world crisis to Euro crisis (debt and banking crisis). Through international economic transmission channels, other challenges might also affect in the future the eurozone economies: the Middle East conflict with high pressure on oil price or the Chinese economic rebound.

As eurozone member, we selected France to explore the relationship between globalization and economic growth by using the wavelet tool. Our preliminary findings reveal important and detailed information regarding the status of globalization-growth connection from cyclical and anti-cyclical point of view.

We demonstrated that in France, during the crisis, the openness acceleration is a good choice to restart the economic growth on short term, while the economic growth promotes the openness under the convergence criteria on medium term.

On long term, the globalization in France is a good incentive for growth during the crises, but in the quality of eurozone member the compression of growth generates more openness because the capital, trade or labour force 'flow outside' to meet new opportunities. The introduction of Euro seems to have notable effect only on medium term, when the globalization positively influences the growth.

Speaker

Pr Mihai Mutascu

LE STUDIUM RESEARCH FELLOW FROM : West University of Timisoara, Faculty of Economics and Business Administration, RO

IN RESIDENCE AT: Laboratoire d’Économie d’Orleans (LEO), UMR 7322, FR