established a single currency was created and by 2000, the Euro came into use. The Euro ensured deeper economic integration, maintained a common external exchange rate, and controlled the monetary and fiscal policies of member states. Although the EU promoted integration and globalization, some member states like the United Kingdom believed the EMU would rob them of their sovereignty and decided not to be part of it (European Commission, 2012 and Lane, 2006). Evidently, membership in these intergovernmental and supranational entities since the end of WWII ensured economic growth for the member states. By 2013, the EU member states had increased to 28 (European Commission, 2014). The UE aimed at promoting economic, social, and territorial cohesion. Because the EU sought to increase economic convergence and growth as well as increasing employment opportunities, a third of its budget was set aside to provide capital for its member states and eliminate disparities between them (Belka, 2013). This research is a continuation of the research I conducted on the impact of EU membership on economic development on 43 European countries. The impact of four other independent variables (corruption, foreign direct investment, political stability, and unemployment) were investigated. I concluded that membership in the European Union had no impact on economic development. Amongst four other independent variables investigated, corruption was the only variable that had a significant impact on development. Some of the suggestions made for further research included treating the European Free Trade Agreement (EFTA) members of the EU in order to control for the free trade and bilateral agreements that the EFTA has with the European Union. Furthermore, one of the limitations of the study was the fact that the length of time as a member of the European Union was not the same for all the countries. For example, the had been members for 54 years since the ECSC whereas countries like “six”
established a single currency was created and by 2000, the Euro came into use. The Euro ensured deeper economic integration, maintained a common external exchange rate, and controlled the monetary and fiscal policies of member states. Although the EU promoted integration and globalization, some member states like the United Kingdom believed the EMU would rob them of their sovereignty and decided not to be part of it (European Commission, 2012 and Lane, 2006). Evidently, membership in these intergovernmental and supranational entities since the end of WWII ensured economic growth for the member states. By 2013, the EU member states had increased to 28 (European Commission, 2014). The UE aimed at promoting economic, social, and territorial cohesion. Because the EU sought to increase economic convergence and growth as well as increasing employment opportunities, a third of its budget was set aside to provide capital for its member states and eliminate disparities between them (Belka, 2013). This research is a continuation of the research I conducted on the impact of EU membership on economic development on 43 European countries. The impact of four other independent variables (corruption, foreign direct investment, political stability, and unemployment) were investigated. I concluded that membership in the European Union had no impact on economic development. Amongst four other independent variables investigated, corruption was the only variable that had a significant impact on development. Some of the suggestions made for further research included treating the European Free Trade Agreement (EFTA) members of the EU in order to control for the free trade and bilateral agreements that the EFTA has with the European Union. Furthermore, one of the limitations of the study was the fact that the length of time as a member of the European Union was not the same for all the countries. For example, the “six” had been members for 54 years since the ECSC whereas countries like
Ncube_EU_Economic_Development.docx