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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. Baldwin, Richard E., 1995. "The Eastern enlargement of the European Union," European Economic Review, Elsevier, vol. 39(3-4), pages 474-481, April.
    2. Baldwin,Richard & Haapararanta,Pertti & Kiander,Jaakko (ed.), 1995. "Expanding Membership of the European Union," Cambridge Books, Cambridge University Press, number 9780521481342, Enero-Abr.
    3. D. Mario Nuti, 1996. "European Community response to the transition: aid, trade access, enlargement1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 503-511, October.
    4. Franke, Siegfried Franz, 1997. "Europa vom Atlantik bis zum Ural: Vision, Illusion oder absehbare Realität?," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 77(10), pages 573-579.
    5. Hylke Vandenbussche & Jozef Konings, 1998. "Globalisation and the Effects of National Versus International Competition on the Labour Market: Theory and Evidence from Belgian Firm Level Data," The World Economy, Wiley Blackwell, vol. 21(8), pages 1151-1177, November.
    6. 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(3), pages 303-327, September.
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    Cited by:

    1. Kimakova, Alena & Rajabiun, Reza, 1999. "An Applied General Equilibrium Analysis of EU Integration for Hungary and Slovakia," Transition Economics Series 9, Institute for Advanced Studies.

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