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The opening of Central and Eastern European countries to free trade: A critical assessment

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  • Kuc‑Czarnecka, Marta
  • Saltelli, Andrea
  • Olczyk, Magdalena
  • Reinert, Erik

Abstract

Three decades after the fall of the Berlin wall and one and a half decades after the Big Bang enlargement of the European Union (2004-2007), we revisit contrasting narratives about the benefit of both free trade and the EU enlargement for Central and Eastern European (CEE) countries. We distinguish old, pre-2004 EU countries from CEE countries that joined the EU in 2004-2007, as well as from the CEE countries that have not become part of the EU, in particular Belarus, Moldova, and Ukraine. Our analysis looks at two temporal windows: one from 1991 – the demise of the Eastern European free trade zone (COMECON) – to today, and the second zooming on the period following the enlargement process of 2004-2007. Our analysis points to an unfavourable turn of events for CEE countries, which appear to have experienced significant losses in their process of rapid integration in the world and EU economies. We are comparing these events in Central and Eastern Europe with the patterns of de-industrialisation and migration that took place in Latin America after a similar free trade shock starting in the 1970s.

Suggested Citation

  • Kuc‑Czarnecka, Marta & Saltelli, Andrea & Olczyk, Magdalena & Reinert, Erik, 2021. "The opening of Central and Eastern European countries to free trade: A critical assessment," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 23-34.
    • Handle: RePEc:eee:streco:v:58:y:2021:i:c:p:23-34
    DOI: 10.1016/j.strueco.2021.04.005
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    Cited by:

    1. Knez, Klemen, 2022. "Domestic Supplier Spillovers of Global Value Chains in Central and Eastern European Countries," MPRA Paper 112391, University Library of Munich, Germany.

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    More about this item

    Keywords

    de-industrialisation; EU enlargement; EU integration; migration; COMECON;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B17 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - International Trade and Finance
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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