Eastern enlargement of the EU: Jobs, investment and welfare in present member countries

Ben Heijdra (), Christian Keuschnigg and Wilhelm Kohler ()
Additional contact information
Wilhelm Kohler: Department of Economics, Eberhard Karls Universität Tübingen

No 2001-11, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: Eastern enlargement of the EU promises gains, but also imposes fiscal costs on incumbent countries. A sensitive issue concerns immigration, jobs and wages. We address these issues in a general equilibrium framework, both analytically and through numerical simulations. Analytical results identify capital accumulation as a prime transmission channel. Using a dynamic CGE model with search unemployment of high- and low-skilled labor, we simulate the effects of enlargement on Germany finding small e.ects from trade, but more pronounced labor market e.ects from migration. Based on German model elasticities, we approximate expected benefits and costs for other member countries as well.

Keywords: enlargement; economic integration; economic growth; capital accumulation; search unemployment; computable general equilibrium analysis (search for similar items in EconPapers)
JEL-codes: C68 F13 F15 (search for similar items in EconPapers)
Date: 2001-10
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (10)

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Related works:
Chapter: Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries (2014)
Working Paper: Eastern Enlargement of the EU: Jobs, Investment and Welfare in Present Member Countries (2002)
Working Paper: Eastern enlargement of the EU: jobs, investment and welfare in present member countries (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2001_11

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