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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 K.

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Abstract

We evaluate potential costs and benefits of Eastern enlargement of the EU. In addressing fiscal costs of enlargement in addition to tariff and non-tariff barriers, we arrive at important conclusions: 1) Overall, extending EU membership to Eastern applicants is more than worth its price to Austria. The (dynamic) gains from integration clearly outweigh the budgetary costs. 2) Somewhat surprisingly, the wage spread between skilled and unskilled labour is narrowed rather than widened. 3) Significant sectoral and intergenerational redistribution may nevertheless render EU enlargement difficult on political grounds, with the agricultural sector and the young losing out.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1786.

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Date of creation: Jan 1998
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Handle: RePEc:cpr:ceprdp:1786

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Related research
Keywords: Computable General Equilibrium Models dynamic trade modelling eastern enlargement European Integration

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

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  1. 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 GmbH. [Downloadable!]
  2. 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!]
  3. 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 GmbH. [Downloadable!]
    Other versions:
  4. 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!]
  5. Tito Boeri & Herbert Brücker, 2005. "Migration, Co-ordination Failures and EU Enlargement," IZA Discussion Papers 1600, Institute for the Study of Labor (IZA). [Downloadable!]
  6. 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!]
  7. 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!]
  8. Kari E.O. Alho & Ville Kaitila & Mika Widgrén, 2008. "Offshoring, Relocation and the Speed of Convergence in the Enlarged European Union," Discussion Papers 1156, The Research Institute of the Finnish Economy. [Downloadable!]
  9. 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:
  10. 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:
  11. 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!]
  12. 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 GmbH. [Downloadable!]
    Other versions:
  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!]
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