Varieties, Jobs and EU Enlargement
AbstractSmall open economies can grow faster than their neighbours without running into a balance of payment crises if they succeed in increasing the number of differentiated goods produced domestically. A further increase in the number of varieties produced in Central and Eastern Europe will require more worker and job re-allocation as production is still largely concentrated in homogeneous good and scale-intensive industries and enterprise density is significantly lower than in Western Europe. Unemployment benefits can support this process by providing seed capital for self-employment choices. But they should be neither too low nor too high. Otherwise, they would prevent restructuring or discourage job search.
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Bibliographic InfoArticle provided by SIPI Spa in its journal Rivista di Politica Economica.
Volume (Year): 92 (2002)
Issue (Month): 1 (January-February)
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Other versions of this item:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform
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