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Strategic Aspects of the 1995 and 2004 EU Enlargements

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Author Info
Kóczy,László Á. (METEOR)

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Abstract

We discuss the two latest enlargements of the EU. While the 1995 entrants are by now fully integrated, the 2004 entrants will ``enjoy'''' a secondary status for a number of years. We attribute this difference to the fact that unlike the former EFTA members joining in 1995, the 2004 entrants formed a group with heterogenous interests, one that lacked the same strong internal economic ties. Not being able to act as a unified block they had a considerably weaker bargaining position. We support our arguments by qualitative results from a simple model, a dynamic partition function game based on Yi (1997) and Morelli and Penelle (1997).

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Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 043.

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Date of creation: 2005
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Handle: RePEc:dgr:umamet:2005043

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Keywords: Strategy

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  7. Morelli, M. & Penelle, P., 1997. "Economic Integration as a Partition Function Game," Papers 9785, Catholique de Louvain - Center for Operations Research and Economics.
  8. Hideo Konishi & Debraj Ray, 2001. "Coalition Formation as a Dynamic Process," Grand Coalition 24, Grand Coalition Web Site. [Downloadable!]
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  9. Syropoulos, Constantinos, 1999. "Customs Unions and Comparative Advantage," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 239-66, April.
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  12. Baldwin, Richard E., 1995. "The Eastern enlargement of the European Union," European Economic Review, Elsevier, vol. 39(3-4), pages 474-481, April. [Downloadable!] (restricted)
  13. Xue, Licun, 1997. "Nonemptiness of the Largest Consistent Set," Journal of Economic Theory, Elsevier, vol. 73(2), pages 453-459, April. [Downloadable!] (restricted)
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