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Gaining credibility and enhancing economic growth through regional integration: The case for EU membership of Eastern Europe

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  • Piazolo, Daniel

Abstract

Trade between Eastern and Western Europe has increased considerably in the last years. Given this market-induced development, why should it be necessary to advance institutional integration? This paper argues that Central and Eastern European countries (CEECs) can potentially enhance the credibility of their governments' policies through institutional integration with the EU. The paper discusses the credibility problems faced by the CEECs and shows how EU membership will enhance the institutional setting and the governments' credibility. Based on regression results between an indicator of institutional change and key macroeconomic variables, an estimate of the potential impact of the CEECs' accession to the EU institutional framework on growth in the CEECs is derived.

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 837.

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Date of creation: 1997
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Handle: RePEc:kie:kieliw:837

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Related research

Keywords: Institutional change; institutional integration; transition; credibility; EU enlargement;

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References

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Cited by:
  1. Buch, Claudia M. & Heinrich, Ralph P. & Piazolo, Daniel, 1998. "Southern enlargement of the European Union and capital account liberalization: Lessons for Central and Eastern Europe," Kiel Working Papers 871, Kiel Institute for the World Economy.
  2. Claudia Buch, 1999. "Capital mobility and EU enlargement," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 135(4), pages 629-656, December.
  3. Diehl, Markus & Schweickert, Rainer, 1998. "Currency crises: is Asia different?," Kiel Discussion Papers 309, Kiel Institute for the World Economy (IfW).
  4. French-German Economic Forum, 1999. "Reduction of Working Time," Working Papers 1999-13, CEPII research center.

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