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Macroeconomic impact of Eastern enlargement on Germany and UK: evidence from a CGE model

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  • Timo Baas
  • Herbert Brucker

Abstract

The Eastern enlargement of the EU is accompanied by a substantial increase in trade, capital movements and migration between the incumbent and the new member states. This article examines the effects of these trade and factor flows on Germany and United Kingdom using a CGE model which considers wage rigidities. We find that Eastern enlargement positively impact real GDP, wages and employment in both economies. The effects are substantially larger than those found in previous studies.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504850701720098&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 17 (2010)
Issue (Month): 2 ()
Pages: 125-128

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Handle: RePEc:taf:apeclt:v:17:y:2010:i:2:p:125-128

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Cited by:
  1. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," CReAM Discussion Paper Series 1104, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. LSE Enterprise, 2011. "Study on the impact of the single market on cohesion: implications for cohesion policy, growth and competitiveness," LSE Research Online Documents on Economics 42840, London School of Economics and Political Science, LSE Library.
  3. Baas, Timo & Brücker, Herbert, 2008. "Macroeconomic consequences of migration diversion : a CGE simulation for Germany and the UK," IAB Discussion Paper 200803, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. Gabriele Tondl & Peter Huber, 2011. "Migration and Regional Convergence in the European Union," ERSA conference papers ersa11p1761, European Regional Science Association.

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