The master's thesis analyses the economic benefits of European integration processes. There is still a gap in this research field, especially in addressing the benefits of economic integration processes of the EU's single market. The research analyses the economic benefits of Slovenia as a small state in the context of European integration and compares the effects with those of Poland, which serves as a benchmark of a large country, that also joined the EU in 2004. We conclude that economic integration affects countries differently, where size is one of the main determinants of the effects, mainly due to small countries’ tendency towards economic openness.
The Solow-Swan model of economic growth serves as a theoretical and empirical framework for the research. Econometric panel data for the period between 1995 and 2018 was analysed using the multiple linear regression method in IBM SPSS software. The findings show greater benefits for Slovenia since entering the single market compared to Poland. This suggests that the single market is useful as an economic shelter for small states.
Economic policy makers can rely on these results to anticipate the impact of external economic shocks and devise preventive measures and national mechanisms to avoid decline in economic growth. The findings can be used in development of Slovenia's investments and economic policies in the context of international cooperation and its position within the EU. Last but not least, the research also contributes to increased consciousness among the public regarding the importance of EU involvement and the single market.
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