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Eastern Enlargement of the EU: How Much Is It Worth for Austria?

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Author Info
Keuschnigg, Christian
Kohler, Wilhelm

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Abstract

For present member countries, eastern EU enlargement entails gains from integration as well as fiscal costs. The authors use a calibrated model to quantify the dynamic effects of discriminatory trade liberalization and immigration from eastern applicants. It is found that enlargement is expansionary and yields a remarkable fiscal dividend. Surprisingly, integration compresses the wage spread between skilled and unskilled labor. Overall, the (dynamic) gains from integration clearly outweigh the fiscal cost. While ambiguous a priori, enlargement is found to hold a remarkable net welfare gain for Austria. Copyright 2002 by Blackwell Publishing Ltd.

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Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 10 (2002)
Issue (Month): 2 (May)
Pages: 324-42
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Handle: RePEc:bla:reviec:v:10:y:2002:i:2:p:324-42

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  1. Mayerhofer, Peter, 2002. "Austrian Border Regions and Eastern Integration A Low Competitiveness - High Growth Paradoxon," Discussion Paper Series 26234, Hamburg Institute of International Economics. [Downloadable!]
  2. Wilhelm Kohler, 2003. "Eastern Enlargement of the EU: A Comprehensive Welfare Assessment," Economics working papers 2003-16, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
  3. Hiro Lee & Dominique van der Mensbrugghe, 2007. "Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia," OSIPP Discussion Paper 07E008, Osaka School of International Public Policy, Osaka University. [Downloadable!]
  4. Hofer, Helmut & Huber, Peter, 2001. "Wage and Mobility Effects of Trade and Migration on the Austrian Labour Market," Economics Series 97, Institute for Advanced Studies. [Downloadable!]
    Other versions:
  5. Kari E.O. Alho & Ville Kaitila & Mika Widgrén, 2004. "Speed of Convergence and Relocation: New EU Member Countries Catching up with the Old," Discussion Papers 963, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  6. Hiro Lee & Robert F. Owen & Dominique van der Mensbrugghe, 2008. "Regional Integration in Asia and Its Effects on the EU and North America," OSIPP Discussion Paper 08E012, Osaka School of International Public Policy, Osaka University. [Downloadable!]
  7. Ben J. Heijdra & Christian Keuschnigg, 2000. "Integration and Search Unemployment: An Analysis of Eastern EU Enlargement," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  8. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement: Paper Presented at the 41st Economic Policy Panel in Luxembourg, 15/16 April 2005," Discussion Papers of DIW Berlin 481, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  9. Bartosova, Dasa & Bartova, Lubica & Fidrmuc, Jarko, 2008. "EU Enlargement Implications on the New Member States Agri-food Trade," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44122, European Association of Agricultural Economists. [Downloadable!]
  10. Kimakova, Alena & Rajabiun, Reza, 1999. "An Applied General Equilibrium Analysis of EU Integration for Hungary and Slovakia," Transition Economics Series 9, Institute for Advanced Studies. [Downloadable!]
  11. Reinhard Neck & Gottfried Haber & Warwick Mckibbin, 2000. "Macroeconomic impacts of European union membership of central and eastern European economies," Atlantic Economic Journal, International Atlantic Economic Society, vol. 28(1), pages 71-82, March. [Downloadable!] (restricted)
  12. Alho, Kari & Kaitila, Ville & Widgrén, Mika, 2008. "Offshoring, Relocation and the Speed of Convergence in the Enlarged European Union," CEPR Discussion Papers 7000, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  13. Hiro Lee & Dominique van der Mensbrugghe, 2006. "Deep Integration and Its Impacts on Nonmembers: EU Enlargement and East Asia," Discussion Paper Series 184, Research Institute for Economics & Business Administration, Kobe University. [Downloadable!]
  14. Heijdra, Ben J. & Keuschnigg , Christian & Kohler, Wilhelm, 2002. "Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  15. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement," IZA Discussion Papers 1600, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Wilhelm Kohler, 2000. "Die Osterweiterung der EU aus der Sicht bestehender Mitgliedsländer: Was lehrt uns die Theorie der ökonomischen Integration?," Economics working papers 2000-01, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
  17. Arjan M. Lejour & Ruud de Mooij & Richard Nahuis, 2001. "EU Enlargement: Economic Implications for Countries and Industries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  18. Wilhelm Kohler & Chrisran Keuschnigg, 2001. "An Incumbent Country View on Eastern Enlargement of the EU. Part II: The Austrian Case," Empirica, Springer, vol. 28(2), pages 159-185, June. [Downloadable!] (restricted)
    Other versions:
  19. Peter Egger, 2001. "European Integration in Trade and FDI: A Dynamic Perspective," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 2(2), pages 30-35, October. [Downloadable!]
  20. Kohler, Wilhelm, 2004. "Eastern Enlargement of the EU: A Comprehensive Welfare Assessment," Discussion Paper Series 26377, Hamburg Institute of International Economics. [Downloadable!]
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