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Trade Liberalization with Eastern Nations. How Sensitive?

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Neven, Damien J

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Abstract

This paper analyses the political economy of trade liberalization by the European Community towards Eastern nations. We identify the sectors that are both sensitive and politically effective. We find that Eastern nations may have a comparative advantage in industries that use capital and (relatively) unskilled labour intensively. We suggest that a shift in the distribution of income away from capital and labour in favour of human capital and regional distribution may drive the political economy of protection in the North of Europe. By contrast, the protection of specific factors may be the most important element in the South of Europe.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1000.

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Date of creation: Jul 1994
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Handle: RePEc:cpr:ceprdp:1000

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Related research
Keywords: Central and Eastern Europe; Political Economy; Trade Liberalization;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F15 - International Economics - - Trade - - - Economic Integration

Cited by:
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  1. Yener Kandogan, 2004. "How Much Restructuring did the Transition Countries Experience? Evidence from Quality of their Exports," William Davidson Institute Working Papers Series 2004-637, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  2. Paul G. Hare, 2000. "Trade Policy during the Transition. Lessons from the 1990s," CERT Discussion Papers 0006, Centre for Economic Reform and Transformation, Heriot Watt University. [Downloadable!]
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  3. Anna Maria Ferragina & Francesco Pastore, 2005. "Mind the Gap: Unemployment in the New EU Regions," IZA Discussion Papers 1565, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Mika Wirgrén, 2006. "Trade Potential, Intra-industry Trade and Factor Content Revealed Comperative Advantage in the Baltic Sea Region," Discussion Papers 1034, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Andrew Newell & Francesco Pastore, 2000. "Regional Unemployment and Industrial Restructuring in Poland," CELPE Discussion Papers 51, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
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  6. Chonira Aturupane & Simeon Djankov & Bernard Hoekman, 1999. "Horizontal and vertical intra-industry trade between Eastern Europe and the European union," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(1), pages 62-81, March. [Downloadable!] (restricted)
  7. Francoise Lemoine, 1994. "CEECs Exports to the EC : Country Differentiation and Commodity Diversification," Working Papers 1994-15, CEPII research center. [Downloadable!]
  8. 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!]
  9. Rudiger Ahrend & Joaquim Oliveira Martins, 2003. "Creative Destruction or Destructive Perpetuation: The Role of Large State-owned Enterprises and SMEs in Romania During Transition," Post-Communist Economies, Taylor and Francis Journals, vol. 15(3), pages 331-356, September. [Downloadable!] (restricted)
  10. Afontsev Serguey, 2002. "Endogenous Tariff Protection and the Level of Trade Distortions in Russia," EERC Working Paper Series 01-07e, EERC Research Network, Russia and CIS. [Downloadable!]
  11. Alessia Amighini & Stefano Chiarlone, 2005. "New comparative advantages in the Central and Eastern European countries," LIUC Papers in Economics 182, Cattaneo University (LIUC). [Downloadable!]
  12. Barry Eichengreen & Richard Kohl, 1998. "The External Sector, the State and Development in Eastern Europe," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series 1034, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley. [Downloadable!]
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  13. Mika Widgrén, 2005. "Revealed Comparative Advantage in the Internal Market," Discussion Papers 989, The Research Institute of the Finnish Economy. [Downloadable!]
  14. M. Wyzan, 1999. "Macedonian and Slovenian Trade after the Break-up of Former Yugoslavia: Focus on the European Union," Working Papers ir99018, International Institute for Applied Systems Analysis. [Downloadable!]
  15. Edin, Per-Anders & Fredriksson, Peter & Lundborg, Per, 2000. "Trade, Earnings, and Mobility - Swedish Evidence," Working Paper Series 2000:24, Uppsala University, Department of Economics. [Downloadable!]
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  16. Hoekman, Bernard & Djankov, Simeon, 1996. "Intra-industry trade, foreign direct investment, and the reorientation of Eastern European exports," Policy Research Working Paper Series 1652, The World Bank. [Downloadable!]
  17. Tito Boeri & Joaquim Oliveira Martins, 2000. "Varieties, Jobs and EU Enlargement," William Davidson Institute Working Papers Series 301, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  18. Aturupane, Chonira & Djankov, Simeon & Hoekman, Bernard, 1997. "Determinants of intra-industry trade between East and West Europe," Policy Research Working Paper Series 1850, The World Bank. [Downloadable!]
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