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Accession Poland's to the EU - Some Lessons from International Trade Theory




The Eastern enlargement of the European Union is significantly increasing the area, where free trade of goods and services are among the core principles of all member countries. Existing economic borders between the applicant countries and the current EU members will have to be broken down, leaving no room for the protection of non-viable industries. In this paper, we apply traditional as well as new theories of international trade in order to identify sectors of the Polish economy with a comparative (dis)advantage. As a main result, human capital- as well as capital-intensive industries will be among the prominent losers of Poland's accession to the EU. This structural change will be accompanied by significant changes in the income distribution. In the long-run, inter-industry trade will be substituted by intra-industry trade. However, because of a high number of determinants, relatively little can be said about the industries which will successfully participate in intra-industry trade.

Suggested Citation

  • Elzbieta Czarny & Guenter Lang, 2002. "Accession Poland's to the EU - Some Lessons from International Trade Theory," Discussion Paper Series 216, Universitaet Augsburg, Institute for Economics.
  • Handle: RePEc:aug:augsbe:0216

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    References listed on IDEAS

    1. Falvey, Rodney E., 1981. "Commercial policy and intra-industry trade," Journal of International Economics, Elsevier, vol. 11(4), pages 495-511, November.
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    6. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-973, October.
    7. Brenton, Paul & Gros, Daniel, 1997. "Trade Reorientation and Recovery in Transition Economies," Oxford Review of Economic Policy, Oxford University Press, vol. 13(2), pages 65-76, Summer.
    8. Gordon H. Hanson & Matthew J. Slaughter, 1999. "The Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States," NBER Working Papers 7074, National Bureau of Economic Research, Inc.
    9. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
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    Cited by:

    1. Lissowska, Maria, 2002. "East European prospective members of the European Union under globalisation pressure," Economic Systems, Elsevier, vol. 26(4), pages 395-399, December.

    More about this item


    EU Eastern Enlargement; International Trade Theory; Intra-industry Trade;

    JEL classification:

    • F1 - International Economics - - Trade

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