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The Integration of Central and Eastern Europe in the European Union: Trade and Labour Market Adjustment

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  • Erik Faucompret
  • Jozef Konings
  • Hylke Vandenbussche

    ()

Abstract

This paper analyses the economics of EU enlargement from three perspectives. First, we provide an institutional background and point out the importance of Agenda 2000. Second, we then analyse the implications for EU trade with Central and Easter European Countries (CEEC's) and in particular we discuss the EU Antidumping legislation and its implications for trade integration between the EU and CEEC's. Third, we engage in an analysis of the implications of economic integration for the EU labour market. To this end, we use a unique firm level survey of 281 Belgian firms. Our findings suggest that: (i) the EU follows a too restrictive approach to trade integration; (ii) economic integration with CEEC's leads to a reduction in the demand for low-skilled labour in small firms, however, this effect is reversed for large firms.

Suggested Citation

  • Erik Faucompret & Jozef Konings & Hylke Vandenbussche, 1998. "The Integration of Central and Eastern Europe in the European Union: Trade and Labour Market Adjustment," LICOS Discussion Papers 7598, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:7598
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp75.pdf
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    References listed on IDEAS

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    1. Franke, Siegfried Franz, 1997. "Europa vom Atlantik bis zum Ural: Vision, Illusion oder absehbare Realität?," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW – German National Library of Economics / Leibniz Information Centre for Economics, vol. 77(10), pages 573-579.
    2. Baldwin, Richard E., 1995. "The Eastern enlargement of the European Union," European Economic Review, Elsevier, vol. 39(3-4), pages 474-481, April.
    3. Alfred Steinherr, 1995. "The Pivotal Role of the European Union for Central and Eastern Europe," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 131(III), pages 303-327, September.
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    Keywords

    Enlargement; economic integration; trade market;

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