The Impact of the Key Structural Shifts on Euro-area’s Endogeneity formation

The Impact of the Key Structural Shifts on Euro-area’s Endogeneity formation | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The Impact of the Key Structural Shifts on Euro-area’s Endogeneity formation Wi-Dae KIM This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-4528501/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 23 Mar, 2025 Read the published version in The Journal of Economic Integration → Version 1 posted You are reading this latest preprint version Abstract This article tests the change in OCA Endogeneity, respectively before and after the Euro launch and Fiscal crisis, to assess how much improvement has been achieved after those structural shifts. Improving upon the existing literature, the test methodology presented here proffers a new standardized tool. The launch of the euro has generally improved Endogeneity more compared to the Fiscal crisis; but, especially in the southern European countries, the result was quite the opposite. Surprisingly, Germany, which has the most efficient and competitive economy in the Euro area, shows the lowest Endogeneity improvement rankings especially after 2010. This German case might tell us about the ‘original root’ of the current economic downturn after reopening from the Covid era. Therefore, it could be inferred that the Endogeneity formation was irregular and disproportionate around two periods. This imbalance has provided a structural background limiting self-sustaining resilience in the area's economy until now. JEL Classification Numbers: C01; E44; F15; F45; J30 Euro OCA Endogeneity Fiscal crisis Convergence Full Text Cite Share Download PDF Status: Published Journal Publication published 23 Mar, 2025 Read the published version in The Journal of Economic Integration → Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-4528501","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":316556333,"identity":"51f70d4f-76af-4da3-9282-8d23f70230f3","order_by":0,"name":"Wi-Dae KIM","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA30lEQVRIiWNgGAWjYDACdgYGCYYCBgZ+HrgQGwEtzCAtBgwMkj0kazE4Q6wW82bmh7cLDGzkjM8cPvbhQw2DPH8DW9oHfFpkDrMZW88wSDM2O9uWPHPGMQbDGQfYDs/Ap0WCmcFMmsfgcOK28zzGzDxsDIwbGNib8TpMgpn9G1DL/8TN/UAtf/4x2BOhhQdky4HEDbw9xsyMbQyJGxjYDhPSUmzNY5BsLHHmWDJjb59E8ozDbMn4tbC3b7zNU2Enx9+TfJjhxzcb2/72NmO8WjCMAMfUKBgFo2AUjAIKAQDcbDlkHxTgmQAAAABJRU5ErkJggg==","orcid":"https://orcid.org/0000-0003-3610-9510","institution":"Korea Center for International Finance","correspondingAuthor":true,"prefix":"","firstName":"Wi-Dae","middleName":"","lastName":"KIM","suffix":""}],"badges":[],"createdAt":"2024-06-04 13:45:09","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-4528501/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-4528501/v1","draftVersion":[],"editorialEvents":[{"content":"https://doi.org/10.11130/jei.2024057","type":"published","date":"2025-03-24T00:00:00+00:00"}],"editorialNote":"","failedWorkflow":false,"files":[{"id":79118240,"identity":"cea9b9e9-ff09-42fe-ba27-a645dc53f093","added_by":"auto","created_at":"2025-03-24 15:37:03","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1423264,"visible":true,"origin":"","legend":"","description":"","filename":"TheImpactJan2024anonymous.pdf","url":"https://assets-eu.researchsquare.com/files/rs-4528501/v1_covered_e6b0a00a-4b57-418f-8f54-d4c7570662be.pdf"}],"financialInterests":"","formattedTitle":"The Impact of the Key Structural Shifts on Euro-area’s Endogeneity formation","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Euro, OCA, Endogeneity, Fiscal crisis, Convergence","lastPublishedDoi":"10.21203/rs.3.rs-4528501/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-4528501/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis article tests the change in OCA Endogeneity, respectively before and after the Euro launch and Fiscal crisis, to assess how much improvement has been achieved after those structural shifts. 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