Trade Liberalization with Eastern Nations. How Sensitive?

Damien Neven

No 1000, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper analyses the political economy of trade liberalization by the European Community towards Eastern nations. We identify the sectors that are both sensitive and politically effective. We find that Eastern nations may have a comparative advantage in industries that use capital and (relatively) unskilled labour intensively. We suggest that a shift in the distribution of income away from capital and labour in favour of human capital and regional distribution may drive the political economy of protection in the North of Europe. By contrast, the protection of specific factors may be the most important element in the South of Europe.

Keywords: Central and Eastern Europe; Political Economy; Trade Liberalization (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 (search for similar items in EconPapers)
Date: 1994-07
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Citations: View citations in EconPapers (29)

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