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Predicting European Enlargement Impacts: A Framework of Inter-regional General Equilibrium

  • d’Artis Kancs

Although the Computable General Equilibrium (CGE) model is not a new tool for analysing policy impacts, it has not gained a wide popularity in regional applications such as rural economies yet. This study demonstrates how a regional CGE model can be applied for analysing regional impacts of changing global economic conditions as well as for assessing inter-regional and inter-sectoral implications of policy changes with even limited computational resources and lacking a full range of regional economic data required by a formal CGE analysis. In the empirical analysis we have found that rural economies in the Central and Eastern European (CEE) accession countries may expect the largest welfare gains from integration into the European Union (EU) if the EU Structural Fund and CAP support measures are implemented immediately but markets are opened gradually to foreign competition.

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File URL: http://www.eeri.eu/documents/wp/EERI_RP_2001_01.pdf
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Paper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2001_01.

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Length: 27 pages
Date of creation: 01 May 2001
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2001_01
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  1. Graham Schindler & Philip Israilevich & Geoffrey Hewings, 1997. "Regional Economic Performance: An Integrated Approach," Regional Studies, Taylor & Francis Journals, vol. 31(2), pages 131-137.
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  3. Jordi Pons-Novell & Elisabet Viladecans-Marsal, 1999. "Kaldor's Laws and Spatial Dependence: Evidence for the European Regions," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 443-451.
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  7. Willem Gunning, Jan & Keyzer, Michiel A., 1995. "Applied general equilibrium models for policy analysis," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 35, pages 2025-2107 Elsevier.
  8. repec:cup:cbooks:9780521319867 is not listed on IDEAS
  9. Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics 12, Universitat de Barcelona. Espai de Recerca en Economia.
  10. McFadden, Daniel, 1978. "The General Linear Profit Function," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 5 McMaster University Archive for the History of Economic Thought.
  11. Dawkins, Christina & Srinivasan, T.N. & Whalley, John, 2001. "Calibration," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 58, pages 3653-3703 Elsevier.
  12. Nijkamp, Peter & Rietveld, Piet & Snickars, Folke, 1987. "Regional and multiregional economic models: A survey," Handbook of Regional and Urban Economics, in: P. Nijkamp (ed.), Handbook of Regional and Urban Economics, edition 1, volume 1, chapter 7, pages 257-294 Elsevier.
  13. Kilkenny, Maureen, 1993. "Rural vs. Urban Effects of Terminating Farm Subsidies," Staff General Research Papers 11121, Iowa State University, Department of Economics.
  14. Hertel, Thomas W., 1985. "Partial vs. general equilibrium analysis and choice of functional form: Implications for policy modeling," Journal of Policy Modeling, Elsevier, vol. 7(2), pages 281-303.
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