On the Welfare Costs of Exclusion: the Case of Central Eastern Europe

Cinzia Alcidi (), Stefano Manzocchi and Gianmarco Ottaviano

Rivista di Politica Economica, 2002, vol. 92, issue 1, 179-208

Abstract: In the past decade, we observed an acceleration of Western European integration, while the transition countries of Central Eastern Europe (CEE) have not become members of the EU. In this paper, we conduct numerical simulations on the consequences of such a kind of differential integration within the European economic region by a spatial model of endogenous growth. Special attention is paid to the welfare effects on insiders and outsiders, from a dynamic viewpoint (that is, accounting for different growth regimes and transition). The main finding is that successful transition does not seem to counterbalance the costs of exclusion for CEE.

JEL-codes: F15 F21 F31 P2 P31 R13 (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:rpo:ripoec:v:92:y:2002:i:1:p:179-208

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