Speed of Convergence and Relocation – New EU Member Countries Catching up with the Old. CEPS ENEPRI Working Papers No. 34, 1 April 2005
(2005) Speed of Convergence and Relocation – New EU Member Countries Catching up with the Old. CEPS ENEPRI Working Papers No. 34, 1 April 2005.
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Abstract
Economic convergence of the EU’s new member countries (NMCs) towards the incumbent EU countries (EU-15) is of paramount importance for both partners, not only in terms of real income but also in nominal terms. This study creates a dynamic, computable general equilibrium model, starting from the Balassa-Samuelson two-sector framework, which is then modified and enlarged (with, among other things, endogenous capital formation, consumption behaviour and labour mobility) to address several other issues such as uncertainty, welfare and sustainability in terms of foreign indebtedness. At the same time, the authors make flows of foreign direct investment (FDI) endogenous in order to evaluate the impact convergence has on the EU-15 and the interaction between the two regions through FDI. The study finds that in a general equilibrium setting, fears of adverse effects resulting from a relocation of EU-15 manufacturing to the NMCs are not well founded.
| Item Type: | Working Paper |
|---|---|
| Remote Resource Image: |  |
| Public Domain: | No |
| Refereed: | No |
| Status: | Published |
| Authors, Individual: | Alho, Kari E.O. and Kaitila, Ville and Widgrén, Mika. |
| Title: | Speed of Convergence and Relocation – New EU Member Countries Catching up with the Old. CEPS ENEPRI Working Papers No. 34, 1 April 2005 |
| Language: | English |
| Institution: | Centre for European Policy Studies (Brussels) |
| Journals and Series: | Series > Centre for European Policy Studies (Brussels) > ENEPRI Working Papers |
| Pages: | 23 |
| Month: | April |
| Year: | 2005 |
| Subjects: | Countries > Latvia Countries > Estonia Countries > Slovakia Countries > Lithuania Countries > Slovenia Countries > Cyprus Countries > Malta Countries > Poland Countries > Hungary Countries > Czech Republic EU policies and themes > Policies & related activities > economic and financial affairs > EMU/EMS/euro |
| Alternative Locations: | http://shop.ceps.be/BookDetail.php?item_id=1215 |
| ID Code: | 6740 |
| Deposited By: | Wilkin, Phil |
| Deposited On: | 31 March 2007 |
