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On the Welfare Costs of Exclusion: the Case of Central Eastern Europe


  • Cinzia Alcidi

    (Università di Perugia)

  • Stefano Manzocchi

    (Università di Perugia)

  • Gianmarco I.P. Ottaviano

    (Università «Bocconi», Milano)


In the past decade, we observed an acceleration of Western European integration, while the transition countries of Central Eastern Europe (CEE) have not become members of the EU. In this paper, we conduct numerical simulations on the consequences of such a kind of differential integration within the European economic region by a spatial model of endogenous growth. Special attention is paid to the welfare effects on insiders and outsiders, from a dynamic viewpoint (that is, accounting for different growth regimes and transition). The main finding is that successful transition does not seem to counterbalance the costs of exclusion for CEE.

Suggested Citation

  • Cinzia Alcidi & Stefano Manzocchi & Gianmarco I.P. Ottaviano, 2002. "On the Welfare Costs of Exclusion: the Case of Central Eastern Europe," Rivista di Politica Economica, SIPI Spa, vol. 92(1), pages 179-208, January-F.
  • Handle: RePEc:rpo:ripoec:v:92:y:2002:i:1:p:179-208

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies


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