EU Enlargement: Benefits of the Single Market Expansion for Current and New Member States
AbstractThis paper evaluates the implications of Eastern EU enlargement with the use of a computable general equilibrium model. The focus is on accession to the Single Market, with explicit modeling of the removal of border costs and costs of producing to different national standards. The results indicate significant welfare gains for the CEECs (volume of GDP increases by 1.4-2.4%) and modest gains for the EU. The steady state scenarios, which allow for the capital stock adjustment in response to higher return to capital, more than double the static welfare gains.
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Bibliographic InfoPaper provided by CASE-Center for Social and Economic Research in its series CASE Network Studies and Analyses with number 0273.
Length: 46 Pages
Date of creation: 2004
Date of revision:
computable general equilibrium; EU enlargement; single market;
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