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Varieties, Jobs and EU Enlargement

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  • Tito Boeri

    (Università «Bocconi» - Milano)

  • Joaquim Oliveira Martins

    (OECD, Paris)

Abstract

Small 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 Info

Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 92 (2002)
Issue (Month): 1 (January-February)
Pages: 139-178

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Handle: RePEc:rpo:ripoec:v:92:y:2002:i:1:p:139-178

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  1. Djankov, Simeon & Hoekman, Bernard, 1996. "Intra-Industry Trade, Foreign Direct Investment and the Reorientation of East European Exports," CEPR Discussion Papers 1377, C.E.P.R. Discussion Papers.
  2. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  3. Robert C. Feenstra & Tzu-Han Yang & Gary G. Hamilton, . "Business Groups And Trade In East Asia: Part 2, Product Variety," Department of Economics 96-14, California Davis - Department of Economics.
  4. Neven, Damien J, 1994. "Trade Liberalization with Eastern Nations. How Sensitive?," CEPR Discussion Papers 1000, C.E.P.R. Discussion Papers.
  5. Daniel Daianu, 1996. "Stabilization and exchange rate policy in Romania ," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 229-248, 05.
  6. Matsuyama Kiminori, 1995. "New Goods, Market Formations, and Pitfalls of System Design," Journal of the Japanese and International Economies, Elsevier, vol. 9(4), pages 376-402, December.
  7. A. Richter & M.E. Schaffer, 1996. "The Performance of De Novo Private Firms in Russian Manufacturing," CERT Discussion Papers 9610, Centre for Economic Reform and Transformation, Heriot Watt University.
  8. Krugman, Paul, 1989. "Differences in income elasticities and trends in real exchange rates," European Economic Review, Elsevier, vol. 33(5), pages 1031-1046, May.
  9. Tito Boeri, 1994. ""Transitional" unemployment," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 2(1), pages 1-25, 03.
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Cited by:
  1. Michael Bolle & José Caétano & Jaakko Kiander & Vladimir Lavrac & Renzo Orsi & Tiiu Paas & Katarzyna Zukrowska, 2002. "The Eastward Enlargement of the Eurozone - State of the Art Report," Eastward Enlargement of the Euro-zone Working Papers wp02, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Jan 2002.
  2. Michael Funke & Ralf Ruhwedel, 2005. "Export variety and economic growth in East European transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(1), pages 25-50, 01.
  3. Michael Funke & Ralf Ruhwedel, 2004. "Trade, product variety and welfare: A quantitative assessment for the transition economies in Central and Eastern Europe," Macroeconomics 0401016, EconWPA.
  4. Rutkowski, Jan, 2004. "Firms, jobs, and employment in Moldova," Policy Research Working Paper Series 3253, The World Bank.
  5. Frensch, Richard, 2004. "Public governance as the source of quality and variety gains from transition," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 388-408, September.

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