Regional Policies and EU Enlargement
Taking both the enlargement process, as currently defined by the EU, and the structural funds as a given, this Paper examines what is the best way for candidate countries to fuel real convergence. The experience from earlier EU enlargements and current economic conditions within the CEEC10 suggest that placing too high expectations on enlargement per se would be misplaced. Further, regional transfers taking place under the structural and cohesion policies are unlikely to become the growth engines of the CEEC10. They may increase income in the receiving countries by an amount equal to the one transferred, but there is no evidence they will have an impact on long-run growth rates. To achieve long-run growth at rates higher than average an appropriate mix of European and national policies is needed. This includes further fostering of trade integration within the EU, restructuring public spending, creation of supply side incentives by proper reforms of fiscal and social insurance policies, free movement of capital and labour, together with a competitive level of labour income taxation. Based on historical experience two types of policies appear to be particularly relevant. First, public programs for long-term income support, corporate subsidies and other forms of income transfer have negative effect on economic growth. We believe they should be terminated as soon as possible. Second, labour and capital mobility are good for growth and economic convergence. In particular, the adoption or continuation of various transfer and/or regulation policies aimed at eliminating labour migration from the CEEC is wrong and damaging. The fear of migration has been magnified by skillful politicians: migrations in past enlargements have been small. There is no reason to expect it to be large in this case.
|Date of creation:||Feb 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x.
- Pietro Garibaldi & Nada Mora & Ratna Sahay & Jeromin Zettelmeyer, 2001.
"What Moves Capital to Transition Economies?,"
IMF Staff Papers,
Palgrave Macmillan, vol. 48(4), pages 6.
- S. Ederveen & H.L.F. de Groot & R. Nahuis, 2003.
"Fertile Soil for Structural Funds? A panel data analysis of the conditional effectiveness of European cohesion policy,"
03-14, Utrecht School of Economics.
- Sjef Ederveen & Henri L . F. Groot & Richard Nahuis, 2006. "Fertile Soil for Structural Funds?A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy," Kyklos, Wiley Blackwell, vol. 59(1), pages 17-42, 02.
- Sjef Ederveen & Henri de Groot & Richard Nahuis, 2002. "Fertile soil for structural funds? A panel data analysis of the conditional effectiveness of European cohesion policy," CPB Discussion Paper 10, CPB Netherlands Bureau for Economic Policy Analysis.
- Hans-Werner Sinn, 2000.
"Germany's Economic Unification. An Assessment after Ten Years,"
CESifo Working Paper Series
247, CESifo Group Munich.
- Sinn, Hans-Werner, 2002. "Germany's Economic Unification: An Assessment after Ten Years," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 113-28, February.
- Sinn, Hans-Werner, 2002. "Germany’s Economic Unification: An Assessment after Ten Years," Munich Reprints in Economics 19643, University of Munich, Department of Economics.
- Hans-Werner Sinn, 2000. "Germany's Economic Unification: An Assessment after Ten Years," NBER Working Papers 7586, National Bureau of Economic Research, Inc.
- Franz, Wolfgang & Steiner, Viktor, 1999.
"Wages in the East German transition process: facts and explanations,"
ZEW Discussion Papers
99-40, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Wolfgang Franz & Viktor Steiner, 2000. "Wages in the East German Transition Process: Facts and Explanations," German Economic Review, Verein für Socialpolitik, vol. 1(3), pages 241-269, 08.
- Canova, Fabio & Ravn, Morten O, 1998.
"The Macroeconomic Effects of German Unification: Real Adjustments and the Welfare State,"
CEPR Discussion Papers
2038, C.E.P.R. Discussion Papers.
- Fabio Canova & Morten Ravn, 2000. "The Macroeconomic Effects of German Unification: Real Adjustments and the Welfare State," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(3), pages 423-460, July.
- Fabio Canova & Morten O. Ravn, 2000. "The macroeconomic effects of German unification: Real adjustments and the welfare state," Economics Working Papers 442, Department of Economics and Business, Universitat Pompeu Fabra.
- Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 205-253, 04.
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:3744. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.