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Economic Consequences for Denmark of EU Enlargement

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Abstract

This paper presents a quantification of the economic impacts to Denmark of the European Unions’ upcoming East enlargement. Specifically the effects of customs liberalization, market integration and immigration are quantified with due regard to estimated repercussions to transfers to and from the European Union and enhanced growth in the new member states. In the basecase projection, which excludes additional immigration, a steady state increase of aggregate GDP at factor costs of 0.08 percent is found along with a welfare gain of 1.27 percent of 1998 GDP. The welfare gains are demonstrated to be highly dependent on the catching up of the CEE region and the route taken by the EU for funding the enlargement.

Suggested Citation

  • Anders Due Madsen & Morten Lobedanz Sørensen, 2002. "Economic Consequences for Denmark of EU Enlargement," DREAM Working Paper Series 200202, Danish Rational Economic Agents Model, DREAM.
    • Handle: RePEc:dra:wpaper:200202
    Note: Conference Paper presented at ECOMOD Bruxelles, July 2002
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    File URL: http://www.dreammodel.dk/pdf/W200207.pdf
    File Function: First version, 2002
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    1. Wilhelm Kohler & Christian Keuschnigg, 2000. "An Incumbent Country View on Eastern Enlargement of the EU Part I: A General Treatment," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 27(4), pages 325-351, December.
    2. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    3. Wilhelm Kohler & Chrisran Keuschnigg, 2001. "An Incumbent Country View on Eastern Enlargement of the EU. Part II: The Austrian Case," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(2), pages 159-185, June.
    4. Blanchard, Olivier J, 1985. "Debt, Deficits, and Finite Horizons," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 223-247, April.
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    2. Hiro Lee & Dominique van der Mensbrugghe, 2007. "Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia," OSIPP Discussion Paper 07E008, Osaka School of International Public Policy, Osaka University.
    3. Lee, Hiro & van der Mensbrugghe, Dominique, 2006. "Deep integration and its impacts on non-members: EU enlargement and East Asia," MPRA Paper 82286, University Library of Munich, Germany.
    4. Lee, Hiro & Owen, Robert F. & van der Mensbrugghe, Dominique, 2009. "Regional integration in Asia and its effects on the EU and North America," Journal of Asian Economics, Elsevier, vol. 20(3), pages 240-254, May.
    5. Marques, Alexandra P.S. & Rodrigues, João F.D. & Domingos, Tiago M.D., 2010. "The circular flow of CO2 emissions embodied in international trade," Conference papers 331986, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Lee, Hiro & Roland-Holst, David & van der Mensbrugghe, Dominique, 2004. "China's emergence in East Asia under alternative trading arrangements," Journal of Asian Economics, Elsevier, vol. 15(4), pages 697-712, August.
    7. Fritz Breuss, 2006. "Warum wächst die Wirtschaft in Österreich rascher als in Deutschland?," WIFO Working Papers 280, WIFO.

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