Study on differences in growth performance and macroeconomic stability across Mediterranean countries published

Despite significant economic reforms in many Southern Mediterranean EU neighbour countries, their growth performance has on average been subdued. Why is it like that? The relatively poor performance of the MED-11 may be linked to their weak integration into the global economy. It is stated that more open economies tend to grow faster than those that adopt inward-looking growth strategies. Thus the main findings are that it is closer relation with the EU which is particularly beneficial for the growth of MED-11. Higher levels of trade and FDI inflows, financial market development, inflation under control, fiscal discipline is the potential result of EU influence which are supposed to build their economic growth.

In the framework of MEDPRO project Leonor Coutinho writes "Determinants of Growth and Inflation in Southern Mediterranean Countries" in CASE Network Studies and Analyses series.