original: How would an EU-membership of the VisegrÂd- countries affect Europe`s economic geography?EU-membership of the VisegrÂd-countries

Johannes BrÃcker ()
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Johannes BrÃcker: University of Technology, Faculty of Traffic Sciences and Faculty of Economics, D-01062 Dresden, Germany

The Annals of Regional Science, 1998, vol. 32, issue 1, 114 pages

Abstract: The question posed in the title of the paper is answered by simulating EU-integration of the VisegrÂd-countries by a spatial computable general equilibrium (SCGE) model. A two-sector model is calibrated for a system of almost 100 regions covering the whole area of Europe and a rest of world region. The sectors are a local sector, producing non-tradables under perfect competition, and a tradables sector, producing a large number of tradable varieties under monopolistic competition. Trade between regions is costly, with costs depending on geographic distance and national impediments to trade. The model is calibrated such that the equilibrium solution reproduces benchmark data about international trade and regional incomes. Economic integration is simulated by reducing impediments to trade between integrating countries and calculating a new counterfactual equilibrium.

Date: 1998-02-10
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