Proceedings of The 2nd International Conference on Advanced Research in Business, Management and Economics
The convergence of the French and the German economies as an effect of the European globalization and the economic effects on both economies
Mariya Kicheva-Kirova, Tsvetomir Tsvetkov, Lyubov Ivanova
The globalization in Europe is manifested through the creation of the European Union and the euro area. Both unions lead to a convergence of European economies in political and economic terms. The economic and political rapprochement between France and Germany is at the heart of globalization in Europe. Therefore, this article examines the extent of this convergence and its effect on the economy of Germany and France. The study is performed by regression analysis using the least-squares method with a cross-section. The following conclusions are drawn: The convergence between the economies of the two countries has a positive effect on their economies. The integration of the French and German economies must continue because it creates a sustainable dynamic for the economic growth of Germany and France. The convergence of the economies of France and Germany leads to a slightly better effect on the German economy.
Keywords: economic growth, economic cohesion, globalization.