EU Enlargement: the Effect on Third Countries
This paper analyses the potential of discriminatory EU enlargement to influence these trade flows. In particular, we present evidence to suggest that enlargement to include some, but not all, of the CEEC's may have a greater potential for trade diversion with production in the new member states replacing imports from the excluded CEEC's. This evidence is presented in sections 3 and 4. Prior to that, section 2 outlines the theoretical basis for trade creation and trade diversion.
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