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Economic impact of the EU Eastern enlargement on New Member States revisited: The role of economic institutions

Author

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  • Hagemejer Jan

    (CASE Center for Social and Economic Research, University of Warsaw, Warszawa, Poland)

  • Michałek Jan J.

    (University of Warsaw, Warszawa, Poland)

  • Svatko Pavel

    (University of Warsaw, Warszawa, Poland)

Abstract

The paper analyses the economic implications of the accession of New Member States (NMS) to the European Union (EU) in 2004 and 2007. The estimation effects of integration with the EU were carried out as a comparative case study using the synthetic control method (SCM) proposed by Abadie and Gardeazabal. Compared to previous studies analysing the effects of accession to the EU (Campos, Coricelli and Moretti), we check for the importance of the quality of economic institutions for the matching process of the analysed economies with their comparators. The results of the econometric analysis show a positive impact on the country performance 6 years and 12 years after accession to the EU. The gains from accession are large but not universal. For 5 of the 10 analysed countries the difference in levels of per capita gross domestic product (GDP) against the counterfactual is at least 30%.

Suggested Citation

  • Hagemejer Jan & Michałek Jan J. & Svatko Pavel, 2021. "Economic impact of the EU Eastern enlargement on New Member States revisited: The role of economic institutions," Central European Economic Journal, Sciendo, vol. 8(55), pages 126-143, January.
    • Handle: RePEc:vrs:ceuecj:v:8:y:2021:i:55:p:126-143:n:1
    DOI: 10.2478/ceej-2021-0008
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    References listed on IDEAS

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    More about this item

    Keywords

    EU enlargement; New Member States; synthetic control method;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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