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Macroeconomic impact of Eastern enlargement on Germany and UK: evidence from a CGE model

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  • Timo Baas
  • Herbert Brücker

Abstract

The Eastern enlargement of the EU is accompanied by a substantial increase in trade, capital movements and migration between the incumbent and the new member states. This article examines the effects of these trade and factor flows on Germany and United Kingdom using a CGE model which considers wage rigidities. We find that Eastern enlargement positively impact real GDP, wages and employment in both economies. The effects are substantially larger than those found in previous studies.

Suggested Citation

  • Timo Baas & Herbert Brücker, 2010. "Macroeconomic impact of Eastern enlargement on Germany and UK: evidence from a CGE model," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 125-128, January.
  • Handle: RePEc:taf:apeclt:v:17:y:2010:i:2:p:125-128
    DOI: 10.1080/13504850701720098
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    References listed on IDEAS

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    1. Ben J Heijdra & Christian Keuschnigg & Wilhelm Kohler, 2014. "Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries," World Scientific Book Chapters,in: European Economic Integration, WTO Membership, Immigration and Offshoring, chapter 2, pages 37-83 World Scientific Publishing Co. Pte. Ltd..
    2. repec:dgr:rugccs:200213 is not listed on IDEAS
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    Cited by:

    1. Peter Huber & Gabriele Tondl, 2012. "Migration and regional convergence in the European Union," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(4), pages 439-460, November.
    2. ., 2012. "Migration impact assessment: a state of the art," Chapters,in: Migration Impact Assessment, chapter 1, pages 3-62 Edward Elgar Publishing.
    3. Malte Sandner & Pia Wassmann, 2018. "The Effect of Changes in Border Regimes on Border Regions Crime Rates: Evidence from the Schengen Treaty," CReAM Discussion Paper Series 1801, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    4. LSE Enterprise,, 2011. "Study on the impact of the single market on cohesion: implications for cohesion policy, growth and competitiveness," LSE Research Online Documents on Economics 42840, London School of Economics and Political Science, LSE Library.
    5. Wassmann, Pia, 2015. "The Economic Effect of the EU Eastern Enlargement for Border Regions in the Old Member States," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113028, Verein für Socialpolitik / German Economic Association.
    6. Wassmann, Pia, 2016. "Do Open Borders Tempt a Saint? Evidence from Schengen on Crime Rates in German Border Regions," Annual Conference 2016 (Augsburg): Demographic Change 145878, Verein für Socialpolitik / German Economic Association.
    7. Wassmann, Pia, 2016. "The Economic Effects of the EU Eastern Enlargement on Border Regions in the Old Member States," Hannover Economic Papers (HEP) dp-582, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    8. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," CReAM Discussion Paper Series 1104, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    9. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2009. "Regional Economic Impacts of Immigration: A Review," Tinbergen Institute Discussion Papers 09-047/3, Tinbergen Institute, revised 23 Jul 2009.
    10. Baas, Timo & Brücker, Herbert, 2008. "Macroeconomic consequences of migration diversion : a CGE simulation for Germany and the UK," IAB Discussion Paper 200803, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Pia Wassmann, 2016. "Do open borders tempt a saint? Evidence from Schengen on crime rates in German border regions," ERSA conference papers ersa16p539, European Regional Science Association.
    12. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    13. Pia Wassmann, 2015. "The Economic Effect of the EU Eastern Enlargement for Border Regions in the Old Member States," ERSA conference papers ersa15p774, European Regional Science Association.

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