Eastern Enlargement of the European Union - Transition in applicant countries and evaluation of the economic prospects with a dynamic CGE-model

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Eastern Enlargement of the European Union - Transition in applicant countries and evaluation of the economic prospects with a dynamic CGE-model

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Risto Vaittinen

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Risto Vaittinen

Abstract

In this study the economic implications of eastward enlargement are analyzed using a multi-regional, dynamic general equilibrium model. EU's eastern enlargement is, in one respect, conventional regional integration where new entrants joins a customs union. In the common trade policy an important aspect is the specific features of the common agricultural policies of the EU. Enlargements also entails the adoption of common market institutions and legislation for the new entrants. This aspect of integration consolidates the reforms that has been taken place in the former planned economies in Central and Eastern Europe. Membership in EU provides also unconditional access to European common markets. These facts are expected to increase the business confidence in the area and lower the required rate of return on investments, which will stimulate growth in the new members.

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Paper provided by Government Institute for Economic Research (VATT) in its series VATT Research Reports with number 64.

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Date of creation: 20 Jun 2000
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Handle: RePEc:fer:resrep:64

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Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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Riikka Ruotoistenmäki & Evgenia Babykina, 2002. "The Actors and the Financial Affairs of the Northern Dimension," VATT Research Reports 86, Government Institute for Economic Research (VATT). [Downloadable!]

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