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EU enlargement: what does it change for the European economic geography?

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  • Sébastien Dupuch
  • Hugues Jennequin
  • El Mouhoub Mouhoud

Abstract

This paper evaluates the effects of the enlargement of the EU to the Central and Eastern European Countries (CEECs), focusing on agglomeration and industrial specialisation patterns in Europe. We first present the theoretical debate based on the New Economic Geography models. The outcome is that, in spite of the lack of labour mobility within the EU, a core periphery schema is expected to occur as a result of vertical linkages. Then, we provide evidence on real and structural convergence and FDI trends in the enlarged EU. We show that sectoral divergence resulting from agglomeration economies is likely to persist through a high-skilled core attracting increasing intensive activities and a low-skilled periphery. By discussing two alternative scenarios in terms of international specialisation, we show that Central European countries are likely to follow a ?Spanish model? based on catching-up, industrial diversification and intra-industry trade, while Eastern countries could durably lag behind. Similarly, the Mediterranean economies, which are engaged in the Euro-Mediterranean partnership, exhibit very complementary international specialisation relative to the EU through resource- and labour-intensive industries. JEL classifications: F15, F21, O52, R10

Suggested Citation

  • Sébastien Dupuch & Hugues Jennequin & El Mouhoub Mouhoud, 2004. "EU enlargement: what does it change for the European economic geography?," Revue de l'OFCE, Presses de Sciences-Po, vol. 91(5), pages 241-274.
  • Handle: RePEc:cai:reofsp:reof_075_0241
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    Cited by:

    1. Anna Maria Ferragina & Francesco Pastore, 2008. "Mind The Gap: Unemployment In The New Eu Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 73-113, February.
    2. Onaran, Özlem, 2007. "Jobless growth in the Central and Eastern European Countries. A country specific panel data analysis for the manufacturing industry," Department of Economics Working Paper Series 372, WU Vienna University of Economics and Business.
    3. Özlem Onaran, 2008. "Jobless Growth in the Central and Eastern European Countries," Working Papers wp165, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. Hugues JENNEQUIN & Isabelle RABAUD, 2006. "Location of services industries in MENA countries, in EU and NMS: a comparative analysis?," LEO Working Papers / DR LEO 1161, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    5. Curran, Louise & Zignago, Soledad, 2012. "EU enlargement and the evolution of European production networks," Research in International Business and Finance, Elsevier, vol. 26(2), pages 240-257.
    6. Ion Lucian Ceapraz, 2008. "The Concepts Of Specialisation And Spatial Concentration And The Process Of Economic Integration: Theoretical Relevance And Statistical Measures. The Case Of Romania’S Regions," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 2(1), pages 68-93, June.

    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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