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EU Enlargement and Convergence

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  • Annekatrin Niebuhr
  • Friso Schlitte

Abstract

Economic integration in Europe has been accompanied by concerns about the effect of integration on regional disparities in the European Union. This paper investigates the effects of the most recent EU enlargement on convergence among countries and regions in the EU-27. Departing from a new economic geography framework, we focus on integration effects caused by changes in market access, released by a reduction of trade impediments. Special attention is paid to the catching-up process of the new member states (NMSs) and the development of regional disparities within the East European countries. From 1995 to 2004, the EU integration process was marked by an economic catching-up of the NMSs. At the same time, regional within-country disparities in the NMSs have been increasing. Our simulation analysis shows that trade integration has a strong effect on market potentials in East European regions. Comparatively strong changes in market access are supposed to foster the East European catching-up at the national and regional levels. However, accounting for these integration effects does not significantly alter the findings of our convergence analysis.

Suggested Citation

  • Annekatrin Niebuhr & Friso Schlitte, 2009. "EU Enlargement and Convergence," Eastern European Economics, Taylor & Francis Journals, vol. 47(3), pages 28-56, May.
    • Handle: RePEc:mes:eaeuec:v:47:y:2009:i:3:p:28-56
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    Cited by:

    1. Lichner, Ivan & Lyócsa, Štefan & Výrostová, Eva, 2022. "Nominal and discretionary household income convergence: The effect of a crisis in a small open economy," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 18-31.
    2. Mariia Shkolnykova & Lasse Steffens & Jan Wedemeier, 2022. "Systems of Innovation in Central and Eastern European countries: Path of Economic Transition and Differences in Institutions," Bremen Papers on Economics & Innovation 2209, University of Bremen, Faculty of Business Studies and Economics.
    3. Dogaru, Teodora & Burger, Martijn & van Oort, Frank & Karreman, Bas, 2014. "The Geography of Multinational Corporations in CEE Countries: Perspectives for Second-Tier City Regions and European Cohesion Policy," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 193-214.
    4. Vassilis Monastiriotis, 2014. "Regional Growth and National Development: Transition in Central and Eastern Europe and the Regional Kuznets Curve in the East and the West," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(2), pages 142-161, June.
    5. Vassilis Monastiriotis, 2011. "Regional Growth Dynamics in Central and Eastern Europe," LEQS – LSE 'Europe in Question' Discussion Paper Series 33, European Institute, LSE.
    6. Andrzej Cieślik & Bartłomiej Rokicki, 2016. "European Integration and Spatial Wage Structure in Poland," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(4), pages 435-453, September.
    7. El-hadj Bah & Josef C. Brada, 2014. "Labor Markets in the Transition Economies: An Overview," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 3-53, June.
    8. Teodora Dogaru & Martijn Burger & Bas Karreman & Frank Oort, 2015. "Functional and Sectoral Division of Labour within Central and Eastern European Countries: Evidence from Greenfield FDI," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(1), pages 120-129, February.
    9. Matkowski, Zbigniew & Prochniak, Mariusz & Rapacki, Ryszard, 2016. "Real Income Convergence between Central Eastern and Western Europe: Past, Present, and Prospects," EconStor Conference Papers 146992, ZBW - Leibniz Information Centre for Economics.

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