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Trade And Factor Flows In A Diverse Eu: What Lessons For The Eastern Enlargement(S)?

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  • Helena Marques

Abstract

This paper reviews the neoclassical and new economic geography (NEG) theoretical frameworks used to analyse the effects of integration on trade and factor flows, and the empirical work carried out within those theoretical frameworks for the European case. The European Union (EU) is of particular interest because it is illustrative of the tensions between deepening of the integration process and widening membership: whereas deepening requires homogeneity, widening has made the EU increasingly diverse. The orthodox framework saw trade and factor flows as substitutes, thus separating their analysis, and was mainly concerned with efficiency issues of trade integration. The NEG framework saw trade and factor flows as complements, and analysed them jointly, looking mainly at distribution issues such as disparities in industry location and wages arising from a single market for goods and factors. The main lesson for the Eastern enlargement(s) is that integration in its various forms leads to an uneven distribution of gains across member countries when these have very diverse economic structures.

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  • Helena Marques, 2008. "Trade And Factor Flows In A Diverse Eu: What Lessons For The Eastern Enlargement(S)?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 364-408, April.
    • Handle: RePEc:bla:jecsur:v:22:y:2008:i:2:p:364-408
    DOI: 10.1111/j.1467-6419.2007.00540.x
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    2. Ambroziak, Adam A. & Grochowska, Renata, 2018. "Mechanisms of non-tariff bariers in agri-food trade between Poland and the Chech Republic on the intra-EU market," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 276625, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    3. Helena Marques, 2008. "Asymmetries in Heterogeneous Integrated Areas: Evidence from Intra-EU Sectoral Trade," Working Papers 2008.2, International Network for Economic Research - INFER.
    4. Grochowska, Renata & Ambroziak, Adam A., 2018. "Selected Aspects of Protectionism of EU Member States in the EU Agri-Food Market," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 18(33, Part ), June.
    5. Jun, Jong-Kun & Hyun, Jae Hoon, 2014. "Anticipation or risk aversion? The effects of the EU enlargement on Korean trade and FDI activities in Central and Eastern Europe," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 19(4), pages 486-503.
    6. Helena Marques, 2010. "Migration Creation and Diversion in the European Union: Is Central and Eastern Europe a ‘Natural’ Member of the Single Market for Labour?," Journal of Common Market Studies, Wiley Blackwell, vol. 48(2), pages 265-291, March.

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