EU enlargement: Economic implications for countries and industries

Ruud de Mooij, Arjan Lejour () and Richard Nahuis

CPB Documents from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: This paper explores the economic consequences of the enlargement of the European Union with countries from Central and Eastern Europe. We focus on integration aspects that go beyond the reduction of formal trade barriers, namely accession to the internal market and free movement of labour. The economic implications for sixteen industries in several European countries are assessed by using WorldScan, a CGE model for the world economy. The results suggest that the candidate member states will gain substantially from accession to the internal market, although some sectors in these countries will shrink. Most EU countries will experience small welfare increases. We also find that the internal market effects are large compared to the economic effects of removing formal trade barriers and migration.

Keywords: CGE; CGE model; internal market; EU; European Union; EU enlargement; gravity model (search for similar items in EconPapers)
JEL-codes: F15 F17 C68 (search for similar items in EconPapers)
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http://www.cpb.nl/eng/pub/cpbreeksen/document/11/doc11.pdf (application/pdf)

Related works:
Working Paper: EU Enlargement: Economic Implications for Countries and Industries (2001)
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Persistent link: http://EconPapers.repec.org/RePEc:cpb:docmnt:11

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